The team from Channel Capital.

The CC Sage Capital Absolute Return Fund (the Fund) managed by specialist Australian equities long short manager, Sage Capital, has been added to investment platform Macquarie Wrap, broadening access to the absolute return strategy.

The Fund, which launched in August 2019, is a market neutral long short strategy where short positions and long positions offset each other, giving investors exposure to Sage Capital’s stock selection skills while eliminating exposure to the underlying equity market. The objective of the Fund is to achieve positive returns in excess of the RBA Cash Rate after fees and expenses over the long term by taking both long and short positions in selected Australian shares. The Fund will typically hold between 100-120 positions.

Managing Director and Chief Investment Officer Sean Fenton said: “The Fund has performed well over the past year, achieved by applying our broad and style neutral investment process. We categorise the market into eight broad Sage groups and focus on selecting stocks within them. This gives us the flexibility to incorporate rapidly shifting company information into the portfolio without taking large binary style positions. Performance has been driven by strong stock selection within these Sage groups which include Defensives, Domestic Cyclicals, Global Cyclicals, Gold, Growth, REITs, Resources and Yield.” 

The Fund has performed well since inception on 20 August 2019 to 30 April 2021, delivering a net return of 11.52% pa* with significantly lower volatility than broader equity indices and no correlation (slightly negative) to equity markets. The Fund aims to deliver consistent positive returns above the RBA Cash Rate, irrespective of equity market movements.

Backed and supported by boutique incubator Channel Capital, Sage Capital was formed in June 2019 and is 100% owned by its investment team. The Fund is open for investment and may be suitable for investors looking for an alternative to traditional asset classes such as equities, bonds or cash, but is still highly liquid.

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*Past performance is not indicative of future performance.

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