Portfolio Overview
The Fund returned +2.15% net of fees for the month of May 2019. Approaching 3 years of operation, the Fund has returned +19.95% p.a. since inception (Jul 16), outperforming the ASX 100 index by +7.95% p.a.
The portfolio’s largest positive contributions for the month came from long positions in Fortescue Metals Group, Xero and National Australia Bank while largest detractors were long positions in Treasury Wine Estates, QBE Insurance Group and OZ Minerals.
The Fund had 30 long positions and 18 short positions with largest exposure to medical devices & services and technology stocks. There was less exposure in the financial services and construction material stocks.
Portfolio Performance
Fund Strategy
Established in July 2016, the Australian Eagle Trust Long-Short Fund aims to achieve strong double digit returns by allowing clients to access Australian Eagle’s demonstrated historical strength in constructing Australian share portfolios applied to a long-short product.
Modelling a combination of Australian Eagle’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. Australian Eagle’s investment process seeks to deliver significant outperformance by identifying mispriced stocks with changing growth profiles and building concentrated portfolios of those stocks.
Australian Eagle Trust Long Short Fund – Net Monthly Returns
Sean Sequeira CFA
CIO
Australian Eagle Asset Management
Tel: (02) 8252 7563
sean.sequeira@austeagle.com
https://austeagle.com/