Totus Alpha Fund: Superior, uncorrelated, risk-adjusted returns

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Livewire Markets

The ASX200 index fell by a staggering 21.2% in March 2020. This was its worst month on record, and many equity funds suffered similar declines. In this dire environment, the Totus Alpha Fund returned +10.4% for the month, outperforming the ASX 300 by a monster 31.2%.

The fund’s record of outperformance during down markets has been a key contributor to the +18.6% per annum return the fund has delivered since inception in April 2012. As Portfolio Manager, Ben McGarry puts it:

“When you combine solid performance in up months, with consistent performance in down months, the result has been superior, uncorrelated, risk adjusted returns for eight years.”

The fund has traditionally been available exclusively to wholesale investors. However, the Totus Alpha Strategy has recently given access to investors who do not qualify as wholesale at a much lower minimum investment level.

In the following investor presentation Ben McGarry provides more detail on the fund’s track record, investment process and how the portfolio is positioned for the current market environment.

Key points:

  • The Fund has limited its capacity to $500 million
  • The investment team all hold significant amounts of their wealth in the fund
  • A track record of rising during periods of volatility and market stress (2012, 2015, 2020)
  • Alpha or performance above the ASX300 of 12.2% per annum since inception in 2012 with low correlation (beta) to the index
  • Employs a combination of long and short positions
  • Currently net short with a view that we are in a bear market and the current rally is not sustainable.

Watch the video by clicking the player below, and a copy of the slides is attached under that. 

To request additional information about the Totus Alpha Strategy please email or send a message using the ‘contact’ button below the video on this wire.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. The article may contain the views or opinions of third party contributors to Livewire Markets. These contributors have not considered your objectives, financial situation, or needs. The information in this article should not be relied upon as a substitute for personal financial advice. Livewire Markets recommends that you seek independent advice before you apply for any financial product or service. Livewire Markets is exempt from requiring an AFSL under ASIC Regulatory Guide 36, section 66.

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