The Dual Momentum Fund – November 2018 Performance Review
Despite our high cash balances going into November, the Fund reported a small loss of -0.93% for the month, more than half of which resulted from sharp single day falls in just two of our remaining holdings as they succumbed to continuing market weakness. While these would normally be absorbed within the movements of a more fully invested portfolio, it does show what can and does occasionally occur in a concentrated, undiversified set of equity holdings.
We’re pleased to see that during this recent market turmoil our peak-to-trough drawdown of 9.78% compares favourably with those of our major markets, with drawdowns in the US (Nasdaq) of over 16% and Japan of over 14%. International markets appear to be finding some short term levels of support, although by month end Japan was the only one of our markets which our system had returned to a ‘risk-on’ status. In accordance with our strategy a small number of new positions had been opened in that market just within the last few days of the month such that month end cash levels still sit at a defensive 91%. The Fund remains both well insulated against any further market deterioration and well positioned to take advantage of improving market conditions when they occur.
Despite the Australian dollar strength during the month, our high cash balance meant currency had only a small influence on our November results, with a month end portfolio-weighted contribution of -0.3%.
Our proven strategy of systematically targeting stocks whose individual share price is both increasing and outperforming over medium to long term time frames will continue to be applied. Our active bottom-up investment style will guide portfolio allocations such that they will continue to expand or contract in response to market risk and reward characteristics as they evolve over time.
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The Dual Momentum Fund remains open to new investment. Apply online by first downloading and reading the Information Memorandum and then clicking the button below. The facility is also accessible from our company website at www.thedualmomentumfund.com.au.
If you have any queries or would like to know more please contact us anytime at mail@thedualmomentumfund.com.au or on +61 8 9284 2906
