Consistency key to long-short success

13-Feb-2017

By Sarah Kendell

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Adviser interest is rising in long-short funds but many sector managers are falling flat as unpredictable market conditions get the better of them, according to Channel Capital.

Group head of distribution Andrew King said it was increasingly difficult for long-short managers to demonstrate consistency, a factor that had attracted the group to partnering with boutique firm L1 Capital, whose long-short fund had delivered a net return of 39.78 per cent annually since inception.

“The last couple of years has tested the wares of most asset managers in this space and there are very few that can illustrate such strong alignment with clients, consistent performance and capital preservation,” he said.

“We look forward to providing advisers access to what we believe is the highest quality long-short strategy in the country.”

The fund had recently launched to retail investors after success in the wholesale market, with a recommended rating from Zenith which commended the manager’s strong track record and the focus of the fund on capital preservation.

L1 Capital founder Mark Landau said the group had seen a huge level of interest from planners since launching the retail version of the long-short fund.

“Investors are looking for strategies that can deliver strong returns, but more importantly have the ability to protect their capital in a market sell-off,” he said.

“Given that we expect the stock market to experience more volatility going forward, this relative strength will become an increasing focus for advisers.”

King confirmed that the fund was available on Hub24, netwealth and Powerwrap, with further announcements expected in the coming weeks.

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