Alleron Investment Management offers wholesale investors:
Australian Eagle Trust Long-Short Fund
Alleron Growth High Conviction Equity
The Australian Eagle Trust Long-Short Fund aims to achieve strong double digit returns by allowing clients to access Alleron’s demonstrated historical strength in constructing Australian share portfolios applied to a long-short product.
Modelling a combination of Alleron’s actual long investment performance since 2005 in conjunction with a short selling discipline, suggests that this product can provide strong investment returns along with an alpha performance that is negatively correlated to the broader Australian equity market.
Australia Ratings conducted a review of the Fund which resulted in a “Very Strong” rating as at April 2018.
The performance of the Australian Eagle Trust Long-Short Fund is divided into two sections:
1. Actual performance for the live fund (net of fees) from July 2016 onwards
2. Hypothetical performance for the period 7 Feb 2005 – 30 Jun 2016
The long component of the hypothetical hedge fund results follow the same process as the Alleron long only portfolio which has an eleven year track record. The short component sells stocks that Alleron identifies as part of its research process to be of lower quality than its long portfolio and stocks that may be fully valued relative to their prospects. Returns are before fees and taxes.
This product was launched in February 2005 and since that time has provided exceptional outperformance of around 300 basis points per annum above the index.
This high conviction approach typically invests in 25 to 35 stocks on an index-independent basis. It implements Alleron’s investment philosophy in a risk efficient manner, buying undervalued stocks that have a margin of safety and a real possibility for transformational growth.
The Alleron Growth High Conviction Equity fund has generated consistent returns against the ASX 100 since its inception in Feb 2005.