The Surrey Australian Equities Fund (SAEF) returned -1.69% in February after fees outperforming the ASX Small Ordinaries Accumulation Index (XSOAI) return of -2.80% and the ASX Top100 Accumulation Index (XTOAI) return of -3.91%.
The Fund has returned +27% over the last 12 months which is +20% ahead of the XSOAI return of +7%.
The February earnings results season was a volatile one and saw sharp share price reactions to what we viewed as often benign corporate earnings releases. From the SAEF’s perspective, of our stock holdings that reported only two provided updates which slightly disappointed. We did not sell either position and have seen both already recover somewhat.
We believe by being a relatively small Fund by Funds Under Management size is a significant advantage in such times of volatility as we are able to move quickly where we believe a stock is mispriced. One such example was Domain Holdings (DHG) which we purchased on the day of its result upon seeing the appointment of interim CEO Greg Ellis. Subsequently the company received a takeover offer from CoStar Group seeing a positive gain for the Fund.
Further commentary regarding the month can be found by clicking the link below.
The Fund is open to new investors, links to the Information Memorandum and applications are via the links below. Applications for new and existing investors are now paperless and can be made online.
Nick Maclean
Managing Director
Surrey Asset Management
Level 47, 80 Collins Street, (North Tower) Melbourne VIC 3000.
Email: nmaclean@surreyassetmanagement.com Mobile: 0425 726 305