Performance summary

The CC Sage Capital Absolute Return Fund returned 1.58%(after fees) in July versus the RBA Cash Rate of 0.33%.*

The CC Sage Capital Equity Plus Fund returned 2.91% (after fees) in July, outperforming the S&P/ASX 200 Accumulation Index by 0.55%.*

Contributors and detractors to performance

During July, the key contributors to portfolio performance were long positions in Sage Group^, Growth. Life360 (ASX: 360 +25%) continues to execute well and deliver strong subscriber and profit growth due to its significant and sustainable competitive advantage in location tracking. New initiatives by Life360 include pet tracking and monetising non-paying subscribers through ads which should underpin continued strong growth. Other strong performers were Block (ASX: XYZ +18%) which was supported by a resilient U.S. consumer and expectations of stronger demand for Cash App Money, while ResMed (ASX: RMD +8%) rallied on anticipation of a strong Q425 result. Sage Group, Yield was also a significant positive contributor to portfolio performance driven by a short positions in Commonwealth Bank of Australia (ASX:CBA -4%) and Suncorp Group (ASX: SUN -3%) which were weak mainly due to a general rotation out of financials.

On the negative side, Sage Group, Resources was the main detractor. A short position in Mineral Resources (ASX: MIN +33%) detracted from performance as it bounced harder than Pilbara Minerals (ASX: PLS +20%) where were main a long position, on the back of a rally in the lithium price due to a halt in production at a Chinese mine. Iluka (ASX: ILU +36%) was the strongest contributor in the group, although offset somewhat by a short position in Lynas Rare Earths (ASX: LYC +22%) which are both key suppliers of rare earths outside of China and rallied post an announcement by the U.S. Department of Defense of a deal with MP Materials, a mining company, that introduced a floor price for rare earths. Another negative contributor was Telix Pharmaceuticals (ASX: TLX-14%) which announced Q2 2025 revenue with strong volumes but cited pricing pressure. Sage Capital remains positive with Telix Pharmaceuticals and sees this as a short-term dynamic leading into the launch of their new higher priced product.

Market Review

The S&P/ASX 200 Accumulation Index returned 2.36% in July.

As news continued to flow surrounding the latest U.S. tariffs and trade deals, this led to driving further market fluctuations as the NASDAQ hit fresh highs on the back of strong earnings results and positive sentiment around AI. In Australia, the RBA surprised the market by holding the cash rate at 3.85%, but an interest rate cut is expected in August following inflation data moderating and the unemployment rate ticking up slightly.

Financials were weak with the rotation out of banks which began in June continuing into July with large cap miners benefiting, underpinned by a higher iron ore price. The PE ratio of the S&P/ASX 200index at 19x and the Industrials ex Financials at 25x are still well above historical averages with technology and retail particularly elevated. The market will be looking for robust earnings results from these sectors in the upcoming August reporting season to justify the lofty valuations. ​​​Read the fund reports for additional commentary.

​​​Read the monthly reports for additional commentary.

• ‍CC Sage Capital Absolute Return Fund monthly report
• CC Sage Capital Equity Plus Fund monthly report

* Past performance is not indicative of future performance. ^ Sage Capital uses a custom grouping system for long short positions (Defensives, Domestic Cyclicals, Global Cyclicals, Gold, Growth, REITs, Resources and Yield). With a focus on the principal macro earnings drivers for each stock, Sage Groups allow for comparisons to GICS for selecting stocks within a sector.