The Sage Capital portfolios produced solid returns in March. The CC Sage Capital Equity Plus Fund delivered a net return of 3.30%* and the CC Sage Capital Absolute Return Fund delivered a net return of 1.65%*, outperforming their respective benchmarks by 0.86% and 1.65%.
Stock selection drove performance during the month with a top contributor being a long position in Graincorp which rose 24%. Stocks within the Growth Sage Group# were strong contributors to performance including short positions in Zip Co and A2 Milk. The Buy Now Pay Later segment as a whole was weak and Zip Co was no exception, falling by 29%. A2 Milk continued its downward spiral, falling by 13% as it continued to lose market share to domestic infant formula brands in China. Long positions in several COVID-19 winners also drove performance, with JB Hi-Fi up 19%, Metcash and Ansell both up 9%.
Key detractors to performance included a short position in Premier Investments which reported a strong result and rallied 23% along with other Consumer Discretionary stocks and a short position in Crown Resorts which rose 18% after receiving a highly conditional takeover bid from Blackstone Group.
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