Asymmetric Opportunities Fund January 2023 Update
Dear Investment Partner,
For the month ended 31 January 2023 the Asymmetric Opportunities Fund (AOF) returned 4.8% (net of all expenses).
By comparison, the fund’s benchmark, the S&P/ASX Small Industrials Accumulation Index was ahead of the fund with a return of 6.3%.
Since the AOF’s inception four years and one month ago, the cumulative return of the fund has been 52% versus the benchmark’s return of 24.7%.
| Returns to 31 January 2023 | 1 month | 3 months | 6 Months | CY2022 | CY2021 | CY2020 | CY2019 | Since Inception 1 Jan 2019 (p.a) |
|---|---|---|---|---|---|---|---|---|
| Asymmetric Opportunities Fund (Net Return*) | 4.8% | 5.3% | 1.1% | -20.3% | 29.8% | 16.7% | 20.3% | 10.8% |
| Benchmark** | 6.3% | 5.5% | 0.4% | -21.8% | 13.7% | 5.9% | 24.5% | 5.6% |
| Value Add (Net) | -1.5% | -0.2% | 0.7% | 1.5% | 16.1% | 10.8% | -4.2% | 5.2% |
*Net of fees & assumes reinvestment of income distributions; **S&P/ASX Small Industrials Accumulation Index (XSIAI); All performance figures are calculated by Asymmetric Asset Managment Pty Ltd. Until June 2022 the Fund was priced on a quarterly basis. This affects the performance time frames that can currently be reported.
net asset value (NAV) unit price: $1.1044
Portfolio Update
The stock market was off to a strong start in January and while the fund produced a solid return it was behind its benchmark. One newly established portfolio position, Sequoia Financial Group, gave back much of its December gain and Praemium’s and IPD Group’s share prices slipped. However, there is little company specific news to point to for the portfolio underperformance.
On the positive side, the market reacted positively to an update from Codan resulting in its share price gaining 29% for the month. We featured Codan in a recent newsletter. It’s a company with nearly all the attributes we look for when making an investment. So, we’re not surprised by this month’s outperformance and expect more in the months ahead.
Kind regards,
Tim McArthur and Pierre Prentice
Co-Portfolio Managers
| Portfolio Snapshot | ||
|---|---|---|
| # of Portfolio Positions (stocks held) | 16 | |
| Equity exposure | 99% | |
| Cash exposure | 1% | |
| Median Market capitalisation of companies held ($m) | $398.5 |
PORTFOLIO HOLDINGS BY MARKET CAPITALISATION
Disclaimer: The information contained in this document is general information only and does not constitute investment or other advice. The contents of this document do not constitute an offer or solicitation to subscribe for units in the Asymmetric Opportunities Fund. Asymmetric Asset Management (AFSL No: 536830) accepts no liability for any inaccurate, incomplete or omitted information of any kind or any losses caused by using this information.