The Harbour Long Short Fund has been issued a “4 IP” rating by Research IP, with a score of 3.50/5.
The Fund is an actively managed, high conviction portfolio investing principally in ‘long’ and ‘short’ listed New Zealand and Australian equities. The focus is on delivering positive returns through the market cycle by investing in long and short-sold equity positions with no particular attention to an equity benchmark. The fund is expected to have lower volatility than share markets. Given the unique features of this Fund, it may not be appropriate for all investors.
What is the Fund’s competitive advantage?
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https://platform.research-ip.com/funds/68538489
Research IP says
“The Harbour Long Short Fund is is benchmark unaware. The weighting to individual securities within the Fund is not made with reference to any benchmark.“
“This is an unleveraged (maximum 60% net exposure) long short fund that is designed to exhibit lower volatility than the market, whilst allowing Harbour to express views on the stocks the team rate most highly and short sell those they rate poorly. Due to the relatively concentrated portfolio (15-25 individual long and 10-15 short), stock positions are likely to have a significant impact on the overall return of the portfolio, especially over shorter time periods.“
“The Fund is one of the very few strategies that employs shorting across Trans-Tasman equities. Research IP notes short selling has the ability to enhance fund performance, but also has the potential to produce uncapped losses. Therefore, manager skill is extremely important. This is also an investment strategy that is not readily replicable by a retail investor or financial adviser.“
“Research IP noted that the fee structure for this Fund was high. However, investors should be aware that the manager intends to reduce the fee on this Fund from 1 July by 44bp to 0.99%, while maintaining the ability to charge a performance fee.”
Research IP, 27 May 2020
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Disclaimer, Disclosures and Warnings
Research IP strongly recommends this document and report be read in conjunction with the relevant Product Disclosure Statement. Research IP gives no warranty of accuracy or completeness of information in this document. Any information, opinions, views or recommendations in this video are general information only and do not take into consideration any person’s particular financial situation or goals and therefore does not constitute personalised financial advice. This document should not be relied upon as a substitute for financial advice from your authorised financial adviser.
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