Platypus to launch momentum-based Asian long/short fund

Australian systematic long/short managers Platypus Capital Management are launching a new Asian equity long/short fund on 8 September.

Australian systematic long/short managers Platypus Capital Management are launching a new Asian equity long/short fund on 8 September.
 
The genesis of the new Asian fund is investor demand for a broad Asian investment instrument using the stock selection methodology that has proven so robust over the last 3 years in the Australian market, particularly in the roughest of market conditions.
 
Trading Hong Kong, Japan, Korea, Taiwan and Australia, the fund – the Caymans based Platypus Asian Equities Fund SPC – will apply the firm’s proprietary momentum stock ranking technology which has been an integral part of their Australian Long/Short Fund since that fund was launched in October, 2005.
 
The new fund will have two segregated portfolios. The first to commence trading will target returns in the high teens or low twenties, with standard deviation of around 10 per cent and positive returns in bear markets.
 
The first portfolio is being seeded by the same Swiss based investor that seeded the Platypus Australian Long Short fund nearly three years ago, and Platypus is flattered by their continuing support.
 
“All of our testing has suggested that the process which we pioneered in the Australian market is applicable in other markets,” said Charles Magri who will be overseeing trading operations for the new fund.
 
“Importantly for us, the variable net directionality and leverage appear to have offered significantly positive returns in years when Asian markets have suffered, while generating frequent outperformance in bull phases,” said Magri.
 
The fund’s portfolios should have a minimum of 160 stocks across the region selected for large market cap and high liquidity so as to minimise the risks attached to thinly traded issues.
 
“Our tests show very significant outperformance of Asian long/short index benchmarks”, says Magri, “and the fund should offer a scalable and low-correlated exposure to the Asian long/short space. The fund offers genuine strategy diversification in the region.