The Sage Capital portfolios performed consistent with our objectives in May, avoiding exposure to style rotations and broad systematic macro risks. The CC Sage Capital Absolute Return Fund delivered a net return of 0.41%* and the CC Sage Capital Equity Plus Fund delivered a net return of 2.53%*, outperforming their respective benchmarks by 0.41% and 0.19% for the month.
The S&P/ASX200 Accumulation Index finished up 2.34% in May. A big focus of the market was the possibility of higher than expected inflation and the impact on bond yields, so it’s no surprise the strongest performing Sage Groups^ were Gold (+10%) for its inflation hedge attributes and Yield (+6%) which comprises companies that tend to perform well when bond yields are expected rise, such as banks and insurers. In this environment, value outperforms growth, which is what we saw play out during the month. At Sage Capital, we focus on managing the portfolios such that we are not exposed to style rotations and aim to deliver consistent returns driven by stock selection.
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.
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