The alternatives sector is unique in that it’s largely defined by what it’s not. Accordingly, how you fit alternatives within your existing asset class structure will depend on relativity, and how the investments interact with the other asset classes according to Atchison’s Kev Toohey.
The private markets juggernaut is one that has also thrown up a wealth of data that other players can use to sharpen up due diligence when making their own investment decisions – especially in the growing secondaries market.
Datt Capital tops Australian Equity funds
Datt Capital Absolute Return Fund ranked as No.1 Australian Equity Fund by Fund Monitors
The Datt Capital Absolute Return Fund has been recognised as the No. 1 Australian Equity Fund as at the end of September 2020; evaluated over a rolling 12-month period using Fund Monitors risk adjusted model.
On the announcement, Fund Monitors noted “Datt Capital are a boutique Melbourne-based investment manager focused on identifying high growth and special situation opportunities. The Datt Capital Absolute Return Fund aims for double-digit absolute returns with lower than typical volatility and quarterly income distributions. Datt Capital utilises an investment process that encourages creative and independent thinking; coupled with rigorous analysis. Datt Capital has a flexible mandate and can invest in asset classes and areas where conventional fund managers cannot; providing an edge in a low-return environment.”
The strong performance was achieved with an average cash weighting of 12% for the period. The Fund has achieved a 12-month rolling return of +35.6% vs a fall of -8.15% for the ASX 200 Total Return Index over the same period; outperforming by +43.75%.
Emanuel Datt, Managing Director and Chief Investment Officer of Datt Capital said: “despite being relatively new, we are very pleased to receive this ranking by Fund Monitors, a well-recognised specialist fund research platform. We consider it a great achievement to have been the front runner in a large competitive field of around 180 peers.
“The past 12 months have been an eye opener for a lot of investors. Markets are cyclical by nature so it becomes imperative to actively capture the upside. We will continue to maintain a relatively defensive posture whilst selectively investing in opportunities with clear, short-duration catalysts.
“A hotly contested and still relatively unclear US election result and a further reduction in the cash rate by the RBA locally were two major recent events. Governments globally are borrowing and monetising debt at record rates. Inflation in real terms is rising against a backdrop of declining economic growth and increasing unemployment.
“Ultimately, it is confidence that drives all markets. Whilst many market commentators lament the apparent high equity market values, it must be seen in the context and through the lens of returns in other asset classes. For instance, fixed income has become almost un-investable for many due to the marginal yield available. Accordingly, the equity markets are attracting a larger portion of capital flows than usual.
“We remain cautiously optimistic that broader markets will remain stable and out-sized returns will still remain achievable in the short-term,” says Datt.
