Sean Sequeira

The Australian Eagle Trust Long-Short fund returned +3.70% net of fees for the month of February 2019, maintaining positive outperformance over 1 year and 2 year periods.

The portfolio’s largest positive contributions for the month came from long positions in QBE Insurance Group, Altium and Commonwealth Bank of Australia while largest detractors were short positions in IOOF Holdings, Janus Henderson and a long position in Cochlear.

The Fund had 34 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 income stocks.

Performance figures are net of fees and expenses, *Inception date is 1 July 2016, ** Performance benchmark, S/I – Since Inception

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.

By Sean Sequeira, CIO

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