5 May 2014For the fourth time in a row, Zenith Investment Partners (Zenith) has reaffirmed its ‘highly recommended’ rating of the Bennelong Long Short Equity Fund. The Fund is managed by the Bennelong Long Short Equity Management (BLSEM) team, headed-up by Chief Investment Officer, Richard Fish.
The Fund is a market neutral Australian equities fund that invests in a diversified portfolio of pair trades. It uses a qualitative bottom-up stock selection approach to build a diversified market neutral portfolio of pair trades based on the relative mispricing of Australian securities. BLSEM focuses on identifying relative value opportunities between stock pairs, prioritising those companies that exhibit strong business franchises and management teams with track records of adding value.
The portfolio construction process involves distilling the ideas generated in the stock selection phase into a portfolio diversified across sectors. Each analyst/portfolio manager is responsible for covering specific sectors and presenting pair trade ideas for consideration. While Richard retains the ultimate decision making authority, he adopts a team-based approach.
Zenith considers the Fund to be “a premium offer in the Australian market neutral sector”. As at the date of reviewing, only seven of the Fund’s peers received Zenith’s ‘highly recommended’ rating.
The Fund is offered via an Information Memorandum and as such can only be invested in by sophisticated (wholesale) investors. It is currently soft closed to new investors.
Bennelong Alpha 200 Fund
The BLSEM team recently launched a new Australian equities strategy, the Bennelong Alpha 200 Fund.
The Bennelong Alpha 200 Fund is a long/short market neutral strategy with the objective of generating consistent returns regardless of market conditions. The investment team applies fundamental research to identify pairs of securities, seeking to capture alpha whilst limiting exposure to market risk by adopting a dollar neutral portfolio market exposure position. The Fund invests primarily in the S&P/ASX 200, with 50% expected to be invested in the S&P/ASX 200 ex-top 100.
Disclaimer: The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned April 2014) referred to in this document is limited to “General Advice” (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessment’s and at http://www.zenithpartners. com.au/RegulatoryGuideline