Tribeca Alpha Plus Fund - Class C

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101217-2022-07-21-02:50.pdf
FUND MANAGER Tribeca Investment Partners
ASX Code
INVESTMENT STYLE The Fund takes both Long Positions and Short Positions in selected Australian shares.
INVESTMENT PROFILE The Fund aims to achieve positive returns in excess of the Benchmark, before fees and expenses, over the long term.
BENCHMARK S&P/ASX 200 Accumulation Index
FUND SIZE S&P/ASX 200 Accumulation Index
NO. OF HOLDINGS 60-70 long positions and 30-40 short positions
FEES 0.97% (inclusive of the net impact of GST and RITC) p.a. of the NAV of the Fund



Benefits of investing in the Tribeca Alpha Plus Fund - Class C

Benefits of a Long/Short investment style

The Australian share market is small by global standards and is dominated by a small number of very large companies. When using a benchmark for constructing an investment portfolio, such as the S&P/ASX 200 Accumulation Index, the performance of a traditional fund which only takes Long Positions will be determined by the size of the fund's shareholding of these very large companies relative to that company's weighting within the benchmark. By contrast, the Fund is also able to take Short Positions in securities by borrowing securities from other holders and selling on market, and reinvesting the proceeds in other Long Positions. This provides the Fund with a larger set of investment opportunities and gives more opportunity to outperform the Fund Benchmark. The Fund is potentially able to achieve higher levels of divergence in the performance of the portfolio relative to the performance of the Fund Benchmark than can be achieved for funds which only take Long Positions. However, short selling of securities does carry additional risk. For more information refer to the Managing risk' section of the PDS.

Risk level


Investor suitability

Long-term investors seeking an Australian equity Long/Short investment strategy with a high level of risk.




Key Features

About the Fund

The Tribeca Alpha Plus Fund - Class A Units is a long/short equity strategy that enables investors to benefit from rising and falling markets by taking long or short positions to profit from positive or negative share price movements.

In managing the Fund, Tribeca doesn't just look for the good news stories like traditional Australian equity managers - it can take advantage of negative views of stocks and sectors, as well as weaker fundamentals.

The Fund focuses on short selling a range of stocks with weak investment characteristics and reinvesting the proceeds in long positions in preferred stocks. This combination of long and short positions provides Tribeca with a large degree of flexibility and enables more active decision making.

Tribeca's investment approach uniquely blends fundamental and quantitative strategies that aim to identify investment opportunities and generate returns above the benchmark.

The benefits of this approach are the significant amounts of company detail that can be unearthed and used to generate insights into its future prospects and likely investment returns.

The Fund has an alpha target of 5-6%, a common target for concentrated funds; what makes this Fund different is its diversified portfolio. The Fund holds, on average 60-70 long positions and 30-40 short positions.


How we invest your money

The assets of the Fund will generally be invested in accordance with the following guidelines:

  • The Fund aims to invest in a portfolio of securities that are listed, or expected to be listed within 90 days, on the Australian Securities Exchange ("ASX)
  • At least 90% of the net value of the shares and like securities held in the Portfolio must be represented by the value of shares and like securities which are constituents of the S&P/ASX 200 Accumulation Index or which are expected to be constituents of that Index within 90 days from purchase
  • The Fund may have between 90% and 150% of its NAV invested in Long Positions
  • The Fund may have between 0% and 50% of its NAV invested in Short Positions
  • The Fund's net exposure to securities will range between 90% and 100% of its NAV
  • The Fund aims to hold no more than 10% of its NAV in cash
  • At the time of entering a transaction, the exposure of the Fund to any security will not differ from the Fund Benchmark weight by more than 5%. The maximum allowable difference, including price changes, is 6%
  • The Fund will not borrow, except by using overdraft facilities as and when required for the efficient settlement of transactions
  • The Fund is permitted to use derivatives. Derivatives are used for hedging purposes only rather than to leverage the Fund. All derivatives used will be exchange traded and covered by cash, physical securities or a combination of both. Futures may be used to maintain market exposure when cash is held in the Fund.