Long-Short Monthly Report – September 2017
The Long Short Australian Equity Fund, Australian Eagle Trust, has returned 29.08% in the first 15 months of implementation.
The September 2017 monthly report has been attached for your interest. In September, the Trust was +0.20% versus e ASX -0.10%.
Sean Sequeira CFA
CIO
Alleron Investment Management
sean.sequeira@alleron.com.au
t: (02) 8252 7563
Portfolio Commentary
The Fund returned +0.20% net of fees for September 2017. The portfolio’s largest positive contributions came from long positions in Xero and Lovisa while largest detractors were a long position in Fortescue Metals Group and a short position in Santos.
Gross exposure at the end of September was 145.52% long and -49.18% short, with total net exposure being 96.34%.
The Fund had 33 long positions and 15 short positions with largest exposure to medical devices & services and resources stocks. There was less exposure in the major banks and retailers.
About the Australian Eagle Trust Long-Short Fund
Alleron is an Australian boutique wholesale fund manager specialising in Australian equities.
Alleron’s investment process seeks to deliver significant outperformance by identifying mispriced stocks with changing growth profiles and building concentrated portfolios of those stocks.
The Australian Eagle Trust Long-Short Fund aims to achieve strong double digit returns by allowing clients to access Alleron’s demonstrated historical strength in constructing Australian share portfolios applied to a long-short product.
Modelling a combination of Alleron’s actual long investment performance since 2005 in conjunction with a short selling discipline, suggests that this product can provide strong investment returns along with an alpha performance that is negatively correlated to the broader Australian equity market.
How to Invest
The Australian Eagle Trust Long-Short Fund is only available to investors via the Australian Eagle Trust Information Memorandum that is available at www.alleron.com.au/how-to-invest/.
The Information Memorandum offers investors the opportunity to invest a minimum of $500,000 in the Australian Eagle Trust (the Fund). Alleron has the discretion to waive or vary this minimum requirement.
The offer of units in the Fund are available to investors both resident in Australia and elsewhere receiving this document (including electronically) in Australia or elsewhere who qualify as “wholesale” clients as that term is defined in section 761G and 761GA of the Corporations Act.
The Trustee may also accept applications from investors who are otherwise permitted to invest as permitted by the Corporations Act.
Investors who are not resident in Australia can invest in the Fund where they are permitted by law to do so. The Trustee and Investment Manager of the Fund is Alleron.