11 February 2013
Zenith Investment Partners (Zenith) has, once again, 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 Bennelong Long Short Equity Fund is a market neutral Australian equities hedge fund that consists of a diversified portfolio of pair trades, arrived at through a qualitatively based bottom-up stock selection research process.
BLSEM uses a fundamental research process that is focused on identifying relative value opportunities between stock pairs. The primary characteristics sought for in long positions are companies with strong business franchises and management teams that have strong track records of added value - with short candidates having the opposite characteristics. Pair companies must operate in the comparable industries/sectors to ensure the portfolio is driven by stock selection rather than sector positions. Zenith's report states this is crucial as it ensures the portfolio remains beta neutral and not correlated to the Australian equities market.
Zenith believes the Fund is an attractive offering providing investors a truly market neutral fund that should act as an excellent diversifier within a broader portfolio.
The Fund is offered via an Information Memorandum and as such can only be invested in by sophisticated (wholesale) investors.