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.
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.
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.