Australian Shares – Long/Short funds have materially outperformed the Australian equity market for the 12 months ending 30 April 2016 according to Zenith Investment Partners’ 2016 Australian Shares – Long/Short Sector Review.
Commenting on the review, Justin Tay, Zenith’s lead analyst on the Australian Shares – Long/Short sector said, “Over the period, Zenith’s rated Australian Shares – Long/Short managers produced an average return of 4.6% compared to the S&P/ASX 300 Accumulation which returned -4.7%.”
Tay also noted: “Zenith’s rated funds also impressed from a risk-adjusted basis, exhibiting lower volatility compared with the broader Australian equity market.”
Tay went on to highlight: “Most managers within the Australian Long/Short space demonstrated an ability to preserve capital in what was a challenging and volatile period for the Australian equity market.”
“In this year’s sector report, Zenith explores in detail the concept of short selling and looks to clarify frequently asked questions and potential misconceptions relating to the topic. Specifically, we address what short selling is used for, its benefits and risks, the types of short selling, factors used to assess a short opportunity, and the process of how to implement short selling”, concluded Tay.
All details can be found in the Zenith 2016 Australian Shares – Long/Short Sector Report.
Summary of the Zenith 2016 Australian Shares – Long/Short Sector Review:
From an initial universe of 15 products:
- 3 were rated “Highly Recommended”
- 9 were rated “Recommended”
- 3 were rated “Approved”
- 1 was rated “Redeem”
- 13 were “Not Rated”
