Strong Positive Returns for MEME Capital in February

MEME Capital are pleased to provide the latest monthly Fund Factsheet and Performance Review. The company have added the current Portfolio Heat measure to the Key Portfolio Metrics data in the Performance Review. Portfolio Heat is a measure of the total risk in a portfolio and essentially shows the fall in value the Fund would experience if every portfolio holding fell to its current exit level (+ 0.5% slippage), at which point the Fund would be 100% invested in cash. The company has also included an excerpt from the Investment Manager’s Commentary for those who would prefer not to digest the whole report.

Investment Manager’s Review.  February broad market performance was dominated by strong positive returns from the ASX20 (+4.1% and in which we do not participate) and the big 4 banks in particular (average about 5.7%) together with a reversal in the Materials sector (-3.2%) and a particularly savage end of month sell-off in the Gold sub-index (-5.3%).  These opposing forces led to an unsurprising underperforming Fund return of -1.83%, though we were on track for a positive or at worst marginally negative monthly result until the late sell-off.  This most recent result brings the Fund returns since inception to +13.56% per annum, still comfortably ahead of the market’s +9.88%.

The market risk mechanism referred to last month, where under currently prevailing market conditions we require additional evidence of a stock’s trend development before initiating new positions and where close stops were applied to those existing holdings at risk of early trend failure has helped to move the portfolio to a position of fewer but more robust positions.  By month end the portfolio held a total of 82 individual stocks and portfolio cash had risen to about 12.6%, up from 5.2% at the end of January.

Request Offer

Full Results