The Fund aims to achieve positive returns in excess of the Fund Benchmark, after fees and expenses, over the long term by taking both long positions and short positions in selected Australian shares.
The CC Sage Capital Absolute Return Fund returned 1.55% in September versus the RBA Cash Rate of 0.32%.
The Sage Groups that were the strongest contributors to performance were Yield, Growth and Defensives with Global Cyclicals being a detractor. The key drivers of performance in Yield was driven by long positions in insurers QBE Insurance (QBE +5%) and Suncorp Group (ASX: SUN +2%) as insurers benefitted from rising long term bond yields. Growth was driven by a short position in Xero (ASX: XRO -10%) as global technology names were hit hard, especially those trading at very high valuations and a long position in Telix (ASX: TLX +3%) on the back of positive sentiment surrounding the growth of the radiopharmaceutical industry. On the negative side, the Global Cyclicals Sage Group was impacted by a short position in Seven Group Holdings (ASX: SVW +12%) as the market became more positive on the growth of its major business Westrac.
What is CC Sage Capital Absolute Return CC Sage Capital Absolute Return is an Managed Funds investment product that is benchmarked against Credit Suisse AllHedge Long/Short Equity Index and sits inside the Alternatives - Market Neutral Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The CC Sage Capital Absolute Return has Assets Under Management of 25.71 M with a management fee of 1.39%, a performance fee of 0.00% and a buy/sell spread fee of 0.6%.
How has the investment product performed recently? The recent investment performance of the investment product shows that the CC Sage Capital Absolute Return has returned -3.96% in the last month. The previous three years have returned 6.58% annualised and 6.39% each year since inception, which is when the CC Sage Capital Absolute Return first started.
How is risk measured in this investment product? There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since CC Sage Capital Absolute Return first started, the Sharpe ratio is 0.95 with an annualised volatility of 6.39%. The maximum drawdown of the investment product in the last 12 months is -5.45% and -5.45% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product? Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The CC Sage Capital Absolute Return has a 12-month excess return when compared to the Alternatives - Market Neutral Index of -0.68% and 3.33% since inception.
Does the investment product produce Alpha over its Peers? Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. CC Sage Capital Absolute Return has produced Alpha over the Alternatives - Market Neutral Index of 0.12% in the last 12 months and 0.41% since inception.
What are similar investment products? For a full list of investment products in the Alternatives - Market Neutral Index category, you can click here for the Peer Investment Report.
What level of diversification will CC Sage Capital Absolute Return provide? CC Sage Capital Absolute Return has a correlation coefficient of 0.32 and a beta of 1.52 when compared to the Alternatives - Market Neutral Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers? For a full quantitative report on CC Sage Capital Absolute Return and its peer investments, you can click here for the Peer Investment Report.
How do I compare the CC Sage Capital Absolute Return with the Credit Suisse AllHedge Long/Short Equity Index? For a full quantitative report on CC Sage Capital Absolute Return compared to the Credit Suisse AllHedge Long/Short Equity Index, you can click here.
Can I sort and compare the CC Sage Capital Absolute Return to do my own analysis? To sort and compare the CC Sage Capital Absolute Return financial metrics, please refer to the table above.
Has the CC Sage Capital Absolute Return been independently verified by SMSF Mate? This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in CC Sage Capital Absolute Return? If you or your self managed super fund would like to invest in the CC Sage Capital Absolute Return please contact Level 26, 1 O’Connell Street,, Sydney NSW 2000 via phone +61 499 783 701 or via email registry@mainstreamgroup.com.
How do I get in contact with the CC Sage Capital Absolute Return? If you would like to get in contact with the CC Sage Capital Absolute Return manager, please call +61 499 783 701.
Comments from SMSF Mates SMSF Mate does not receive commissions or kickbacks from the CC Sage Capital Absolute Return. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - June 30, 2023 The CC Sage Capital Absolute Return Fund returned -0.28% in June versus the RBA Cash Rate of 0.33%.
The Sage Groups* that were the strongest contributors to performance were Defensives and Yield, with Domestic Cyclicals and Resources Groups being detractors. The key drivers of performance in Defensives included a long position in AGL Energy (ASX: AGL +15%), which rose after providing strong FY24 guidance – well ahead of consensus expectations driven by sustained higher wholesale electricity prices. Within Defensives, a short position in ASX (ASX -6%) contributed strongly as the market digested its investor day which outlined double digit cost growth over the next two years as it works to replace the archaic CHESS settlements system and meet regulatory commitments.
Within the Yield Sage Group, performance was aided by long positions in Insurance Australia Group (ASX: IAG +10%), following its investor day during the month which highlighted margin expansion into FY24 driven by strong insurance premium growth and slowing claims inflation. Another strong contributor in Yield was a long position in QBE Insurance (ASX: QBE +7%). It rallied on the back of broker research highlighting several halves of conservative claims reserving across its US insurance business leading to increased confidence in the company’s earnings outlook. On the negative side, Domestic Cyclicals was impacted by a long position in Qantas (ASX: QAN -7%), which fell on profit taking post its investor day at the end of May, and concerns around slowing consumer spending domestically. Within Resources, a short position in Fortescue Metal Group (ASX: FMG +15%) turned unfavourable as the market anticipated possible Chinese stimulus support for housing during key policy meetings in July.
Performance Commentary - March 31, 2023 The CC Sage Capital Absolute Return Fund returned -0.45% in March versus the RBA Cash Rate of 0.30%.
The Yield and Defensives Sage Groups* were the strongest contributors with the weakest being the Growth and REITs Sage Groups. In Yield, performance was driven by a short position in Computershare (ASX: CPU -13%) which fell with declining US interest rate expectations and short positions in Westpac Banking Corporation (ASX: WBC -4%) and Commonwealth Bank of Australia (ASX: CBA -2%) which underperformed as competition for deposits and home loans intensified. Defensives outperformance was driven by a short position in A2 Milk Company (ASX: A2M -12%) following a profit warning from milk supplier Synlait and a long position in Sonic Healthcare (ASX: SHL +10%) which continued its strong momentum from its result last month.
On the negative side, key detractors in the Growth Sage Group were short positions in REA Group (ASX: REA +13%) which rallied on proposed price increases and a stabilisation in property prices and Cochlear (ASX: COH +7%) which benefited from a market preference for quality defensive earnings. The REITs Sage Group were also a detractor this month with long positions in Charter Hall (ASX: CHC -17%) and Dexus (ASX: DXS -8%) underperforming with unlisted market valuation fears following the collapse of Silicon Valley Bank in the US
Performance Commentary - January 31, 2023 The CC Sage Capital Absolute Return Fund returned -0.30% in January versus the RBA Cash Rate of 0.27%.
The REITs and Global Cyclicals Sage Groups* were the strongest contributors to performance, with Growth and Resources Sage Groups being detractors. REITs performance was driven by long positions in Charter Hall Group (ASX: CHC +15%) and Goodman Group (ASX: GMG +15%) which rose due to a combination of falling bond rates and strong results from Prologis, an overseas competitor, which cited continued high rental growth for industrial property. Global Cyclicals was driven by a short position in Amcor (ASX: AMC -5%) which fell on uncertainties about the outlook for consumer packaging volumes and a long position in Corporate Travel Management (ASX: CTD +25%) which was strong on the back of an expected pick-up in activity following China’s reopening.
On the negative side, Growth Sage Group performance was impacted by short positions in Pro Medicus (ASX: PME +21%) which announced several new client wins, and Breville Group (ASX: BRG +23%) which rallied on a short squeeze as industry data indicated trading over the Christmas period was stronger than expected. The Resources Sage Group performance was impacted by a long position in Santos (ASX: STO 0%) which gave guidance for lower than expected production due to the temporary shut down of the John Brookes platform in Western Australia and a short position in Sims Limited (ASX: SGM +17%) which bounced on perceived improvements in the scrap metal market since the last weak trading update.
Performance Commentary - December 31, 2022 The CC Sage Capital Absolute Return Fund returned -0.95% in December versus the RBA Cash Rate of 0.25%.
The Yield and Defensives Sage Groups* were the strongest contributors with REITs and Resources Sage Groups being detractors. Performance in Yield was driven by QBE Insurance Group (ASX: QBE +4%) which continued to rally after a strong performance update in late November. Defensives was driven by a short position in Endeavour Group (ASX: EDV – 8%) which fell over concerns around regulatory changes in gaming that would impact its Hotels division and a long position in Telstra Group (ASX: TLS 0%) which held up better than sector peers in a falling market.
On the negative side, REITs Sage Group performance was impacted by long positions in Charter Hall Group (ASX: CHC -13%) and Goodman Group (ASX: GMG -8%) which fell after news reports that Blackstone Real Estate Income Trust, a large US REIT that owns build to rent residential property, would have to divest assets to meet redemption requests. Resources Sage Group performance was impacted by short positions in Fortescue Metals Group (ASX: FMG +6%) and BHP Group (ASX: BHP 0%) which were relatively strong driven by a further 14% rise in the iron ore price in the month and a long position in lithium miner Allkem (ASX: AKE -18%) which was weak due to a fall in the lithium price on concerns of near term weaker demand from China for electric vehicle production.
Performance Commentary - September 30, 2022 The CC Sage Capital Absolute Return Fund returned 2.29% in September versus the RBA Cash Rate of 0.18%.
The Growth, Yield and Resources Sage Groups* were the strongest contributors to performance with REITs being a detractor. The Growth Sage Group was driven by a long position in ResMed (RMD +5%) which rallied on the prospect of further market share gains as more bad news emerged from its key competitor, a short position in Carsales.com (CAR -16%) which fell on the back of poor updates from US peers raising concerns about the recent US acquisition and a short position in Pinnacle Investment Management (PNI -19%) which declined along with other fund managers as markets fell. The Yield Sage Group was driven by a long position in Computershare (CPU +0.2%) which rose as short-term cash rate expectations increased and a short position in Macquarie Group (MQG -14%) which fell being sensitive to credit spreads which spiked up over the month. The Resources Sage Group was driven by long positions in lithium stocks Pilbara Minerals (PLS +25%) and Allkem (AKE -0.4%) as the lithium price continued to rise and a short position in Worley (WOR-12%) as the oil price fell amid a deteriorating demand outlook.
The REITs Sage Group was a detractor t
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