AIM Global High Conviction Fund Records -6.25% Return For December

  • Jan 17, 2019 AEDT
  • Team Kalkine
AIM Global High Conviction Fund Records -6.25% Return For December

Aitken Investment Management's (AIM) Global High Conviction Fund is managed by Charlie Aitken who has 25 years of experience in financial markets. In December 2018, AIM Global High Conviction fund generated a negative return of 6.25 percent in its long-short strategy. Further, the global equity market witnessed a substantial fall in December with the MSCI World Equity Index down by 7.7 percent, primarily driven by the US S&P500 Index which lost 9%. The S&P500 experienced worst December since 1931 with the biggest monthly loss in nearly a decade.  In the calendar year 2018, the company suffered a loss of 23.8 percent with an FY19 YTD loss of 17.6%.

In its announcement, the company informed that it is appearing that the outperformance of US equities in US Dollars is coming to an end as the company is looking at the start of a “re-coupling” of US assets to the rest of the world.

The company also informed that there is a growing likelihood that both US equities and the US Dollar have peaked for the cycle. On this basis, currently, the fund is effectively hedged to the Australian Dollar due to which the fund suffered a loss in December; although, it is now supporting the performance of the company. The company has lowered its US equity exposure and utilized the January bounce in US equities to re-initiate some short index positions. The company believes that the pending US earnings season will hold very few big positive surprises, while conversely, revenue and margins could disappoint.

In the November month, the fund had generated a negative return of 0.23%. During November, the company added Ping An, Tencent, Hong Kong Exchanges & Clearing, Alibaba, Autohome, and Travelsky to the Fund. The company also increased its investment in Boeing in the wake of the 737 MAX crash off Indonesia. Further, the company added Woodside Petroleum to the Fund’s portfolio on the view that energy prices are bottoming, while the company took profits in Qantas Airways on that same view.

With the recent speculation of additional stimulus measures by the Chinese policymakers, AIM is optimistic about its returns in CY 2019. Further, the company is expecting that the US Stocks will struggle in 2019 as the company quoted the example of Apple, whose revenues declined in 2018.

Aitken Investment Management is 100 percent owned by the principals and staff, and its Chief Investment Officer, Charlie Aitken is considered one of Australia’s leading macroeconomic forecasters and stock pickers. Aitken Investment Management does not intend to replicate the returns of the MSCI World Index; instead, they make their own stock decisions based on where they see the opportunity set. AIM views itself as a global long/short absolute return fund with an objective to compound capital and implements trading strategies aimed at minimizing capital losses.

AIM’s Fund follows a medium-term “top-down meets bottom-up” strategy, and it employs stop-loss parameters that limit the capital drawdown of any losing investment.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK