Portfolio Overview
The Fund returned -0.53% net of fees for the month of November 2018. Calendar year-to-date 2018, the Fund has returned +1.07% compared to the ASX 100 return of -2.61%.
The portfolio’s largest positive contributions came from long positions in NextDC, Commonwealth Bank of Australia and a short position in Janus Henderson while largest detractors were long positions in Woodside Petroleum, Treasury Wine Estates and Cochlear.
Alleron remains confident in the Energy arguments and has re-weighted these stocks back to model weights as high conviction stock picks. The Fund had 31 long positions and 19 short positions with largest exposure to medical devices & services and technology stocks. There was less exposure in the major banks and financial 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 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. Alleron’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
Alleron Investment Management
Tel: (02) 8252 7563
Mob: 0411 155 441
sean.sequeira@alleron.com.au