Plato Global Market Neutral Fund

SEPTEMBER 2020 PERFORMANCE, AT A GLANCE:

Past performance is not a reliable indicator of future performance. Returns are quoted in USD and net of applicable fees, costs and taxes. 

FUND FACTS:
wdt_ID CLASS LIST APIR ARSN INCEPTION INVESTMENT MINUMUM MANAGEMENT FEE PERFORMANCE FEE

Performance fee is 20% of the difference in the Fund’s return (net of management fees) relative to its benchmark return multiplied by the net asset value of the Fund. Fees and costs may can be negotiated for certain investors such as wholesale clients (as defined in the Corporations Act), depending on factors such as the amount invested. Fees are inclusive of GST and net of any applicable Reduced Input Tax Credits (‘RITC’).

Commentary

The Plato Global Market Neutral Fund appreciated by 1.33% in September. The HFRX Equity Market Neutral index fell by -0.83%%. This was against a pronounced pull-back in equities with several markets falling into correction territory. Value stocks with positive share price momentum and high earnings quality performed well. Top contributors included Zip Co (digital payments, -33%, short), Esprinet (hardware , +45%, long), and Grenke (lease financing, -49%, short). Gross exposure decreased in line with market levels from 296% to 287%. We anticipate increasing volatility as the November 3 election date approaches and will keep gross exposure at this level until post the election.

About the Fund

INVESTMENT OBJECTIVE:
The fund aims for consistent capital appreciation and a low correlation with equity markets.

Investment Approach

Plato’s investment approach is best described as a systematic implementation of bottom-up fundamental investing. With a state-of-the art technology platform, 50% of employees holding PhDs, and access to over 850 data sources, the firm is able to bring a high level of rigour and innovation to the investment process.

Companies are evaluated based on 4 investment pillars:

  1. Holistic Quality
  2. Intrinsic Value
  3. Sentiment / Catalyst
  4. 100 Red Flags

On the long side of the portfolio, the fund manager looks for high quality businesses, trading at a discount to intrinsic value, with favourable sentiment, and a low number of red flags. On the short side, the fund manager looks for low quality businesses, trading at a premium to intrinsic value, with unfavourable sentiment, and a high number of red flags.

The fund manager places a large emphasis on robust portfolio construction and risk management. The overarching aim is maximise the exposure to attractive investment opportunities while limiting unwanted sources of risk, such as equity market risk.

About the Fund Managers

DR DAVID ALLEN

Head of Long Short Strategies

Formerly, Dr. Allen was Managing Director and Head of Research at JP Morgan Asset Management in London. In 2014, Dr. Allen won the EuroHedge UCITS Fund of the Year. He also managed the JPM Europe Equity Plus (€5bn) and JPM Europe Equity Absolute Alpha (€1bn.) funds.

He holds a PhD from Cambridge in Quantitative Finance.

CHARLES LOWE

Senior Quantitative Analyst

Formerly, Charles was at Macquarie for 12 years, most recently as a Division Director in their Quant Hedge Funds team. Prior to joining Macquarie, Charles worked as an analyst at Commonwealth Bank of Australia, and subsequently Freehills.

Charles holds a Bachelor of Commerce degree from the University of New South Wales, with an Actuarial Studies major.

ABOUT PLATO

Plato was founded in 2006 in Sydney, Australia. The firm currently has over USD $4bn assets under management across a variety of strategies.

PORTFOLIO STATISTICS
SECTOR EXPOSURES AND CONTRIBUTIONS (%)
REGION EXPOSURE BREAKDOWN (%)
COUNTRY EXPOSURES AND CONTRIBUTIONS (%)
SECTOR EXPOSURE BREAKDOWN (%)

DISCLAIMER

Interests in the Plato Global Market Neutral Fund (ARSN 629 617 607) (‘Fund’) are issued by Pinnacle Fund Services Limited, ABN 29 082 494 362 AFSL 238371 (‘Pinnacle’). Plato Investment Management Limited AFSL 504616 ABN 77 120 730 136 (‘Plato’) is the investment manager of the Fund. Pinnacle is not licensed to provide financial product advice. A copy of the most recent Product Disclosure Statement (‘PDS’) of the Fund can be located at https://platoredux.flywheelstaging.com/global-strategies/plato-global-market-neutral-fund/. You should consider the current PDS in its entirety before making an investment decision..

Pinnacle and Plato believe the information contained in this communication is reliable, however its accuracy, reliability or completeness is not guaranteed. Any opinions or forecasts reflect the judgment and assumptions of Plato and its representatives on the basis of information at the date of publication and may later change without notice. The information is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. This communication is for general information only. It has been prepared without taking account of any person’s objectives, financial situation or needs. Any persons relying on this information should obtain professional advice relevant to their particular circumstances, needs and investment objectives. Past performance is not a reliable indicator of future performance.

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“Opinion is the medium between knowledge and ignorance”

Plato (427-347 BC)

“Opinion is the medium between knowledge and ignorance”

Plato (427-347 BC)