Australian Eagle Asset Management’s Sean Sequeira recorded a 16.27 per cent return for his long-short fund, after fees, and 19.23 per cent before fees.
Fortescue was a winner: the stock has more than doubled this year.
“The improvement of their cashflows was still not recognised by the market,” he recalled.
Australian Eagle Trust Long-Short Fund celebrates 3 years of consistently strong performance.
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.
Alleron Investment Management has relaunched as Australian Eagle Asset Management, looking to gain a stake in retail and differentiating from its past as an exclusive wholesale and institutional operation.
Australian Eagle Asset Management, which used to be Alleron, went long Treasury Wine Estates shares at $4. The way Australian Eagle CIO Sean Sequeira saw it, the downside was limited: it had only $300 million of debt and a small but dazzling source of growth.
Australia Ratings conducted its annual review of the Australian Eagle Trust Long Short Fund and has retained its VERY STRONG rating.
What you didn’t own mattered just as much as what you did own, if you wanted to outperform the market in 2017-18, top fund managers say.
A VERY STRONG rating indicates a very strong conviction that the Fund can deliver a risk adjusted return in line with the Fund’s investment objective. This is based on an investment rating scale used by Australia Ratings to indicate how well we believe a fund will perform against a range of risks.
It was a rare good year for stock pickers, with the median actively managed fund over the 12 months beating the benchmark S&P/ASX 300 accumulation index (which includes the impact of dividends) by 13.8 per cent to 11.9 per cent.
03 November 2017
A 150/50 structure can be an efficient solution for extracting the best risk/return from an approach that tends to be long high-quality stocks and short low-quality stocks.