The 130/30 Focus Fund1 amplifies Ausbil's successful stock selection skills by allowing both long and short equity options
The aim of the Fund is to outperform the S&P/ASX 200 Accumulation Index over the long term by investing primarily in listed Australian securities (long and short) and international securities.
Why Long Short?
The three main benefits of introducing a long short strategy into a diversified portfolio are;
• potentially delivers superior returns to a long only Australian equities portfolio.
• provides a moderate to low level of correlation with other asset class returns.
• takes advantage of expected falls (as well as rises) in stock prices.
Key features of the strategy
• fundamental process with quantitative inputs
• target allocation of 130% Long, 30% short.
• short positions generally comprise either a pairs trade or fundamental shorts.
• short positions individually managed from an absolute risk management perspective.
• security lending arrangement that significantly reduces client counter-party risk.
We classify ourselves as ‘core’ wherein at certain stages of the cycle the Fund may have a value or growth tilt. Ausbil employs a four stage process to provide the framework for portfolio construction consistent with its investment philosophy. The process is summarised in the diagram below:
Latest investment report
The Fund is a concentrated equity fund which primarily invests in listed or expected to be listed Australian securities that are generally chosen from the S&P/ASX 200 Index. The Fund may also use short selling. The Fund may invest in companies listed overseas. The Fund may also invest in exchange traded derivatives and cash or cash equivalents.
Click here for the latest report.
19 Apr 2017
24 May 2017 - Ausbil Investment Management, Deputy Head of Equities, Gian Pandit, discusses market dynamics, the benefit of its short positions and overweight long positions in its 130/30 Focus Fund.
2 Feb 2016
02 Feb 2016 - Ausbil Investment Management, Deputy Head of Equities, Gian Pandit discusses the Ausbil 130/ 30 Focus Fund and its aim goals of positive