Paul Skamvougerous and Anthony Aboud, Perpetual's Long-Short investment team, outline the benefits of absolute return funds
Paul Skamvougerous and Anthony Aboud, Perpetual's Long-Short investment team, outline the benefits of absolute return funds. Skamvougerous says characteristics of an absolute return fund include capital preservation, returns through alpha generation (or rewards for stock picking) and uncorrelated returns (effectively positive returns throughout any market cycle). Part of the strategy and investment process includes identifying short selling opportunities. Aboud says the recent flood of IPO's has been providing a number of opportunities in this area. What they are finding is that the private equity firms have stripped the balance sheets of these businesses bare and are selling them at the top of their earnings cycle. Aboud says, In fact in many cases their earnings have actually been inflated by what we consider are non-recurring items. You can access the full video here:
The Perpetual Equity Investment Company Limited is an ASX listed investment company offering investors access to a portfolio of predominantly high quality Australian and global listed securities, selected by Perpetual Investment Management Limited.