Lonsec noted the strength of the investment process, which differs from peers by employing a blend of quantitative analysis and fundamental research which combined, facilitates the opportunity to generate multiple sources of alpha, through a highly collegiate investment team.
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 on 20 August 2019, the CC Sage Capital Equity Plus Fund has delivered 4.41% p.a. net of fees to 31 August 2020, outperforming its benchmark (S&P/ASX200 Accumulation Index) by 8.20% p.a.
The CC Sage Capital Absolute Return Fund is a market neutral or absolute return strategy where short positions and long positions offset each other, giving investors exposure to Sage Capital’s stock selection skills while eliminating exposure to the underlying equity market, and typically holds between 100-120 positions. Since the launch on 20 August 2019, the CC Sage Capital Absolute Return Fund has delivered 13.05% p.a. net of fees to 31 August 2020, outperforming its benchmark (RBA Cash Rate) by 12.54% p.a.
Sage Capital’s commitment to responsible investment has also been recognised. Its integration of ESG within the investment process was stronger relative to peers in the Active Extension and Alternatives sectors.
Managing Director and Chief Investment Officer Sean Fenton said “this independent endorsement further validates the strength and cohesion of our experienced investment team, as well as the robustness of our investment process − evidenced by both Sage Capital funds achieving their performance objectives, since inception in August 2019.
It provides investors with broader access to long/short strategies that may prove to be a good additional diversifier of long-only Australian equities exposures in the current volatile market environment. Our ability to short companies removes the constraint around index weights. The distribution of weights across the index becomes irrelevant and our stock selection process gives us the freedom to select portfolio weights for stocks that are independent of the index weight, subject only to liquidity. The greater diversification resulting from this can mean a better risk/reward trade-off and potentially more consistent returns for 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. Both Funds received a recommended rating from Zenith Investment Partners in February this year.
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