The Sage Capital portfolios produced solid returns in March. The CC Sage Capital Equity Plus Fund delivered a net return of 3.30%* and the CC Sage Capital Absolute Return Fund delivered a net return of 1.65%*, outperforming their respective benchmarks by 0.86% and 1.65%.
Stock selection drove performance during the month with a top contributor being a long position in Graincorp which rose 24%. Stocks within the Growth Sage Group# were strong contributors to performance including short positions in Zip Co and A2 Milk. The Buy Now Pay Later segment as a whole was weak and Zip Co was no exception, falling by 29%. A2 Milk continued its downward spiral, falling by 13% as it continued to lose market share to domestic infant formula brands in China. Long positions in several COVID-19 winners also drove performance, with JB Hi-Fi up 19%, Metcash and Ansell both up 9%.
Key detractors to performance included a short position in Premier Investments which reported a strong result and rallied 23% along with other Consumer Discretionary stocks and a short position in Crown Resorts which rose 18% after receiving a highly conditional takeover bid from Blackstone Group.
View our monthly reports below for additional commentary around performance, market review, portfolio positioning and outlook.
* Past performance is not indicative of future performance. # Sage Capital uses a custom grouping system for long short positions (Defensives, Domestic Cyclicals, Global Cyclicals, Gold, Growth, REITs, Resources and Yield). With a focus on the principal macro earnings drivers for each stock, Sage Groups allow for comparisons to GICS for selecting stocks within a sector.
This information is for wholesale and professional investors only and has been prepared by Sage Capital Pty Ltd ACN 632 839 877 AR No. 001276472 (‘Sage Capital’). Channel Investment Management Limited ACN 163 234 240 AFSL 439007 (‘CIML’) is the responsible entity and issuer of units in the CC Sage Capital Equity Plus Fund ARSN 634 148 913 and the CC Sage Capital Absolute Return Fund ARSN 634 149 287 (collectively ‘the Funds’). Channel Capital Pty Ltd ACN 162 591 568 AR No. 001274413 (‘Channel’) provides investment infrastructure services for Sage Capital and is the holding company of CIML. This information is supplied on the following conditions which are expressly accepted and agreed to by each interested party (‘Recipient’).
This information contains general financial product advice only and has been prepared without taking into account the objectives, financial situation or needs of any particular person. It is intended solely for wholesale clients (including sophisticated investors) as defined under sections 761G and 761GA of the Corporations Act 2001 (Cth).
The information provided should not be considered personal advice, a recommendation, or an offer to invest in the Funds. Recipients should not rely on this information in making investment decisions. A Recipient should, before making any investment decisions, consider the appropriateness of the information, and seek professional advice.
Neither Sage Capital, Channel, CIML or their representatives and respective employees or officers (collectively, ‘the Beneficiaries’) make any representation or warranty, express or implied, as to accuracy, reliability or completeness of this information or subsequently provided to the Recipient or its advisers by any of the Beneficiaries, including, without limitation, any historical financial information, the estimates and projections and any other financial information derived there from, and nothing contained in this information is, or shall be relied upon, as a promise or representation, whether as to the past or the future. All investments contain risk. Past performance is not a reliable indicator of future performance.
For further information and before investing, please read the Product Disclosure Statement and Target Market Determination which is available from
www.channelcapital.com.au
