Zenith upgrades Tribeca Alpha Plus Fund to ‘Recommended’ as funds under management approach $1 billion

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The Tribeca Alpha Plus Fund has been upgraded to a ‘Recommended’ rating from research house Zenith, as its funds under management approach the $1 billion mark.

The fund, managed by Sydney-based Tribeca Investment Partners and distributed by GSFM, offers investors an actively managed long/ short investment approach to Australian equities.

The ratings upgrade comes two years after Jun Bei Liu, took over lead portfolio management role of the fund in March 2019.

In its rating report Zenith said Ms Liu has the requisite experience to manage the fund and that it has confidence in her portfolio management and leadership qualities.

“Zenith’s conviction in the fund has strengthened with the demonstrated stability of the investment team and strategy asset base. Overall, Zenith believes the fund is well placed to meet its investment objectives.

“Tribeca’s investment approach blends quantitative and fundamental insights, capturing the breadth of research afforded by the quantitative process, which enables a wide opportunity set to be assessed in an unbiased fashion, and the value add that comes from taking high conviction positions due to company-specific insights gained from fundamental research,” Zenith said.

Based in Sydney, Tribeca was founded in 1998 and offers investors a range of specialised funds focused on equities, credit and natural resources. The firm is 100 per cent owned by its senior staff following a management buyout of GSFM’s stake in June 2018. GSFM continues to distribute several of Tribeca’s funds

Zenith said it views the arrangement between Tribeca and GSFM positively, as it allows the investment team to focus on investment-related activities.

GSFM CEO, Damien McIntyre said the upgraded rating was an excellent result, and echoed Zenith’s view that the investment team’s depth of experience across a wide range of sectors is a key positive of the fund.

“Unlike a traditional long-only Australian equities fund, Tribeca uses a long short investment strategy that provides it with greater flexibility to meet investment objectives.

“The short selling capability enables the fund to profit from companies that are expected to fall in price and therefore, potentially offers a different return profile to most long-only Australian equity funds.

“The Fund is most appropriate for investors who can tolerate higher levels of volatility for the higher returns that the strategy potentially offers,” Mr McIntyre said.

The Tribeca Alpha Plus Fund has returned 36.75 per cent in the 12 months to May 2021, compared to the benchmark return of 28.23 per cent.

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