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Sage Capital’s Australian active extension long/short fund added to Macquarie Wrap and HUB24

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August 11, 2020

Sage Capital’s Australian active extension long/short fund added to Macquarie Wrap and HUB24

The CC Sage Capital Equity Plus Fund managed by specialist Australian equities long/short manager Sage Capital has been added to Macquarie Investment Manager/Consolidator, Macquarie Super Manager/Consolidator as well as HUB24, Mason Stevens and Praemium, broadening access to the Australian equity active extension strategy.

The CC Sage Capital Equity Plus Fund is an active extension, long/short strategy that takes both long and short positions where the proceeds from the short positions are reinvested in long positions to retain exposure to the equity market and typically holds between 100-120 positions. Since inception in August 2019, the CC Sage Capital Equity Plus Fund has delivered 1.72% net of fees to 31 July 2020, outperforming its benchmark (S&P/ASX200 Accumulation Index) by 8.27%.

Managing Director and Chief Investment Officer Sean Fenton said “We have a liquid, diverse portfolio and are focused on a repeatable investment process that we expect to consistently generate returns through time, including through volatile markets such as those we are currently experiencing. The Fund provides a solution for investors who are seeking an enhanced exposure to the equity market, and we do this by holding both long and short positions – in a risk-controlled way.”

In the current volatile market environment, many investors are looking for ways to diversify risk in their portfolio. Employing a long/short strategy may prove to be a good additional diversifier of long-only Australian equities exposures. For investors with a core passive allocation, the strategy could also be a potentially higher returning alternative.

“Our ability to short companies removes the constraint around index weights. The distribution of weights across the index becomes irrelevant and we have the freedom to choose portfolio weights for stocks that are independent of the index weight, subject only to liquidity. A long/short portfolio can achieve active return targets with a far more diversified portfolio of stocks. The greater diversification resulting from this can mean a better risk/reward trade-off and potentially more consistent returns to investors over time.” Mr Fenton said.

Backed and supported by boutique incubator Channel Capital, Sage Capital was formed in June 2019 and is 100% owned by its investment team. The CC Sage Capital Equity Plus Fund is open for investment and may suit investors with a medium to long term investment horizon and who seek to complement existing long-only Australian equities portfolio exposures.

This information is for professional and wholesale investors only and has been prepared by Sage Capital Pty Ltd ACN 632 839 877 AR No. 001276472 (‘Sage Capital’). Channel Investment Management Limited ACN 163 234 240 AFSL 439007 (‘CIML’) is the responsible entity and issuer of units in the CC Sage Capital Equity Plus Fund ARSN 634 148 913 and the CC Sage Capital Absolute Return Fund ARSN 634 149 287 (collectively ‘the Funds’). Channel Capital Pty Ltd ACN 162 591 568 AR No. 001274413 (‘Channel’) provides investment infrastructure services for Sage Capital and is the holding company of CIML. This information is supplied on the following conditions which are expressly accepted and agreed to by each interested party (‘Recipient’).

This information contains general financial product advice only and has been prepared without taking into account the objectives, financial situation or needs of any particular person. It is intended solely for wholesale clients (including sophisticated investors) as defined under sections 761G and 761GA of the Corporations Act 2001 (Cth).

The information provided should not be considered personal advice, a recommendation, or an offer to invest in the Funds. Recipients should not rely on this information in making investment decisions. A Recipient should, before making any investment decisions, consider the appropriateness of the information, and seek professional advice.

Neither Sage Capital, Channel, CIML or their representatives and respective employees or officers (collectively, ‘the Beneficiaries’) make any representation or warranty, express or implied, as to accuracy, reliability or completeness of this information or subsequently provided to the Recipient or its advisers by any of the Beneficiaries, including, without limitation, any historical financial information, the estimates and projections and any other financial information derived there from, and nothing contained in this information is, or shall be relied upon, as a promise or representation, whether as to the past or the future. All investments contain risk. Past performance is not a reliable indicator of future performance.

For further information and before investing, please read the Product Disclosure Statement and Target Market Determination which is available from www.channelcapital.com.au
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