Portfolio Performance
Performance figures are net of fees and expenses, *Inception date is 1 July 2016, ** Performance benchmark
Portfolio Overview
The Fund returned +3.60% net of fees for June 2018. For FY 2018, the Fund has returned +25.13% compared to +12.05% for the ASX 100. The portfolio’s largest positive contributions came from long positions in Commonwealth Bank, Seek and Xero while largest detractors were short positions in APA Group and Domino’s Pizza and a long position in Fortescue Metals Group.
The Fund had 31 long positions and 24 short positions with largest exposure to medical devices & services and resources stocks. There was less exposure in the major banks and income related stocks.
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
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 on 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.
Sean Sequeira CFA
CIO
Alleron Investment Management
t: (02) 8252 7563
sean.sequeira@alleron.com.au