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.
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