Australian hedge fund manager Sage Capital saw both of its flagship strategies lag benchmarks in August, as high-conviction positions in Telix Pharmaceuticals and WiseTech Global dragged on performance during what it called one of the most volatile earnings seasons on record, according to a report by Financial Review.
The $1.2bn firm’s Absolute Return Fund fell 4.45% after fees versus a 0.29% gain for the RBA Cash Rate Total Return Index, while its Equity Plus strategy rose 0.8%, well behind the ASX 200 Accumulation Index’s 3.1% advance.
Telix dropped 31% after a regulatory setback with the US Food and Drug Administration, while WiseTech slid 15% on integration and pricing concerns. Sage, led by veteran stock-picker Sean Fenton, said it remains committed to Telix, viewing the issues as “timing-related” and the shares undervalued given strong sales momentum elsewhere.
Not all positions disappointed: short bets on James Hardie and Reece delivered double-digit gains, and exposure to gold miners such as Evolution Mining and Newmont provided a lift as bullion prices strengthened. But underweights in Seek and a long in Domino’s Pizza—which continued to face skepticism over its turnaround efforts—added to the drag.
