Long/short equity strategies aim to provide investors with returns that beat the benchmark, whatever the market conditions.

FMOTY Winner

Fund overview

In managing the Fund, Tribeca doesn’t just look for the good news stories like traditional Australian equity managers – it can take advantage of negative views of stocks and sectors, as well as weaker fundamentals.

The Fund focuses on short selling a range of stocks with weak investment characteristics and reinvesting the proceeds in long positions in preferred stocks. This combination of long and short positions provides Tribeca with a large degree of flexibility and enables more active decision making.

Tribeca’s investment approach uniquely blends fundamental and quantitative strategies that aim to identify investment opportunities and generate returns above the benchmark.

The benefits of this approach are the significant amounts of company detail that can be unearthed and used to generate insights into its future prospects and likely investment returns.

The Fund has an alpha target of 5-6%, a common target for concentrated funds; what makes this Fund different is its diversified portfolio. The Fund holds, on average 60-70 long positions and 30-40 short positions.

The Fund at a glance

  • A blended fundamental and quantitative investment process
  • Target allocation of 150% long, 50% short (with maximum 50% short exposure)
  • Short positions are reinvested into preferred stocks to maintain market exposure
  • Targeted outperformance1 of the S&P/ASX-200 Accumulation Index of 5-6% p.a., before fees, over a rolling three to five year period, with an expected tracking error of 4-5% p.a.
  • The Fund has outperformed2 this benchmark in seven out of nine financial years since its inception in 2006
  • Winner of the 2016 Money Management/Lonsec Fund Manager of the Year – Equity (long/short) category.

This is not a forecast and there is no guarantee that the Fund will achieve this return
Past performance is no indication of future performance.