Performance summary

The CC Sage Capital Absolute Return Fund returned 0.87% over the June 2026 quarter versus the RBA Cash Rate of 1.07%, delivering an active return of -0.20%.*

The CC Sage Capital Equity Plus Fund returned 4.24% over the June 2026 quarter versus the S&P/ASX 200 Accumulation Index of 4.05%, an active return of 0.19%.*

Portfolio performance came from a broad spread of positions rather than any single large stock selection, across a quarter defined more by violent style rotation than by any clean fundamental repricing. The strong performance in April was largely given back in a flow-driven May, which heavily favoured high-multiple growth and quality stocks, before a sharp June relief rally across cyclical sectors as the market reacted to the RBA's first monetary policy pause of the year.

Over the quarter, Sage Capital’s underweight position in banks and long positions across growth and base-metal exposures were the key contributors to performance. These gains were partly offset by short positions in building materials and discretionary retail stocks that were squeezed by the broader cyclical recovery.

Yield group, the largest contributor to portfolio performance

The underweight exposure to the major banks added the most value over the quarter as the sector lagged a rising market on profit-downgrade risk and a normalising credit cycle, with Westpac’s (ASX: WBC -9%) short position the portfolio standout. A long position in Computershare (ASX: CPU +35%) extended its run on higher-for-longer US interest rates and receding fears over the threat from tokenisation. The main offset was a small, long position in Judo Capital (ASX: JDO -30%), which dragged on performance after cutting its FY26 and FY27 profit guidance on rising SME bad debts.

Growth group, the strongest contributor to quarterly performance

The Australian growth complex reconnected with the strength in offshore software and technology after May's disconnect. A long position in Zip Co (ASX: ZIP +109%) more than doubled after a third-quarter FY26 update showed record cash earnings up +42%, and prompted updated guidance. Long positions in Life360 (ASX: 360 +42%) and Telix Pharmaceuticals (ASX: TLX +21%) added to portfolio performance. The main offset was a short position in Pro Medicus (ASX: PME +74%), which rallied on a higher rate of US contract wins and receding fears that AI would disrupt medical imaging software.

Resources group, positive returns despite broader sector weakness

Sage Capital’s exposure to base -metals and steel added value as supply disruption and data centre power demand supported prices, which was led by long positions in Capstone Copper (ASX: CSC +30%) and BlueScope Steel (ASX: BSL +24%), while short positions across the bulk miners and energy paid off as iron ore fell to a two-month low on record Chinese port inventories and softening steel demand, with Fortescue (ASX: FMG -6%) and Beach Energy (ASX: BPT -34%) contributing. The main detractors were a short position in Mineral Resources (ASX: MIN +16%), which was caught in the mid-quarter rally in mining stocks, and a long position in Woodside (ASX: WDS -20%), as oil prices retreated and geopolitical risk premiums unwound.

REITs and Defensives groups contribute positively

Within REITs, long positions in Charter Hall (ASX: CHC +24%) and Scentre (ASX: SCG +16%) were added to the portfolio as the interest rate-sensitive sector firmed. A short position in Dexus Group (ASX: DXS -6%) also added value, with the stock remaining under pressure following an adverse court outcome that forced further asset divestment. Within the Defensives group, long positions in data centre operators Goodman Group (ASX: GMG +22%) and NextDC (ASX: NXT +31%) benefited from accelerating AI-infrastructure demand. These gains were partly offset by a long position in The a2 Milk Company (ASX: A2M -22%), which declined following a product recall in the US.

Global and Domestic Cyclicals, the main detractors within the portfolio

The RBA's June monetary policy pause was read as the top of the tightening cycle, which sparked a sharp relief rally in the most interest rate-sensitive parts of the market, and created a short-term headwind for the existing short and underweight portfolio positions within building materials and discretionary retail.

Short positions in Reece (ASX: REH +30%) and James Hardie (ASX: JHX +46%), an underweight in Wesfarmers (ASX: WES +24%) and a short position in Premier Investments (ASX: PMV +19%) were the principal detractors. Long positions in Qantas (ASX: QAN +27%), Orica (ASX: ORI +20%) and Dyno Nobel (ASX: DNL +27%) helped to partially offset these losses. Gold exposure was a modest drag on performance, while short positions added value as the sector fell, however this was materially offset by declines in long positions, including Evolution Mining (ASX: EVN -7%).

For more detailed commentary and analysis, view the latest performance reports:

• 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 and 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.