Huang Chung
03-03-2014, 08:15 PM
Got a bead on WMK from a few comments made by Ken Bloomfield of Financial Clarity as an aside to a question he received about sister company Australian Leaders Fund on Sky Business News Your Money Your Call program.
From Watermark's fund overview:
Watermark Market Neurtal Fund (WMK) is a listed investment company investing predominantly in Australian securities. The Company's portfolio is managed by Watermark Funds Management, an absolute return manager with a long track record.
In a market neutral structure, the long portfolio and the short portfolio are of roughly equal value. This minimizes exposure to general market movements. The performance of the fund will be the interest on the cash at bank plus the difference in performance of the two portfolios.
Seems to be a fund for the times, if you believe markets are somewhat toppy, with most of the gains now well and truly in the rear view mirror.
A couple of points worth noting.
1. It is trading a little above asset backing (but not too much)
2. The performance fees aren't small.
3. This fund won't do too well, if the market goes for a big run, as the short portfolio will hold it back. However, I see little chance of that happening).
From Watermark's fund overview:
Watermark Market Neurtal Fund (WMK) is a listed investment company investing predominantly in Australian securities. The Company's portfolio is managed by Watermark Funds Management, an absolute return manager with a long track record.
In a market neutral structure, the long portfolio and the short portfolio are of roughly equal value. This minimizes exposure to general market movements. The performance of the fund will be the interest on the cash at bank plus the difference in performance of the two portfolios.
Seems to be a fund for the times, if you believe markets are somewhat toppy, with most of the gains now well and truly in the rear view mirror.
A couple of points worth noting.
1. It is trading a little above asset backing (but not too much)
2. The performance fees aren't small.
3. This fund won't do too well, if the market goes for a big run, as the short portfolio will hold it back. However, I see little chance of that happening).