S&P awards K2 five stars
K2 Asset Management’s Australian Absolute Return Fund has been awarded a five star rating by Standard & Poor’s.
The long/short fund has a long bias, with the flexibility of taking short or cash positions in tough markets, K2 chief investment officer Mark Newman said.
“Our approach is based on a proven strategy of stock picking with an emphasis on liquidity, so we can quickly respond to market conditions,” he said.
“Over seven years the fund has delivered consistently good returns, particularly during rocky markets, adding protection to investment portfolios.”
The fund started in October 1999 and has not produced a negative return since inception. It has an annual return for that period of 18.2 per cent and funds under management now stands at $480 million.
Newman said investors are now looking at long/short investment styles as a source of income and protection for their portfolios.
“Absolute return aims to deliver a specific rate of annual return in all market conditions,” he said.
“Investors are protected from the awkward situation of long-only funds, where those funds may outperform the benchmark, yet still produce negative returns.”
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