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 hits its 3-year milestone with its Absolute Return Fund
The team at Datt Capital is punching the air in delight as the firm hits their three year goal for the Datt Capital Absolute Return fund.
There has always been an initial five-year plan in mind to develop a sustainable, high-performing boutique funds management business. At the three-year mark, the team is well-positioned to deliver on this original objective having achieved a 14.98% a year compound return, almost 50% above the S&P/ASX200 Accumulation index, a commonly used benchmark, which was up about 10% a year for the same period.
The Datt Capital is a long-only fund targeting double-digit returns over the medium term. It has a multi-asset approach designed to reduce downside risk and volatility and invests in assets typically outside the mandate of conventional equity managers.
Datt Capital founder and portfolio manager, Emanuel Datt, said passing the three-year milestone was “a significant and pleasing benchmark.”
The fund had its genesis in the Datt Family office. “The fund was launched based on external requests to extend our funds management horizon to outside investors, which we did,” says Datt.
“So much has happened, and not happened, in the fund’s three-year journey to date. We have experienced the disintegration of globalisation and restrictive, pandemic-induced social conditions, disruptive US elections and an agitated social environment, plus the rise of Asian nations of the future.”
Each financial-year return has been increasing in trajectory over time, and Datt hopes to continue this trend. Investor returns (after fees) by financial year have run:
18/19 – 1.57%
19/20 – 23.23%
20/21 – 26.86%
Some of the portfolio’s biggest winners have been Adriatic Metals (ASX: ADT), Afterpay (ASX: APT), Dusk Group (ASX:DSK) and Selfwealth (ASX: SWF).
The current portfolio comprises a mixture of growth companies in a number of sectors with the commodities, retail, biotech and consumer financials featuring prominently. It also has a small allocation towards fixed income.
“We feel all of these equity positions have the potential to provide asymmetric returns should (the companies) execute their strategy successfully. We feel that we are well-positioned to continue to outperform with our current portfolio exposures,” says Datt.
On the macro-outlook, the manager says, “We believe the macro outlook will be more of the same – that is, a continuation of ‘easy’ money policies overlaid with some inflationary tendencies, a continuation of social environments fuelled by social media but, overall, a relatively positive but potentially volatile markets landscape.”
