We view ourselves as a global long/short absolute return fund and are therefore benchmark unaware. We do not intend to replicate the returns of the MSCI World Index, and the composition of this index doesn’t influence our investment decision. We make our stock decisions based on where we see the opportunity set, and we will allocate currencies as a separate overlay. This is a genuine point of difference compared to many of the other Australian based global funds, whose returns correlate closely to their hurdle (i.e., the MSCI Global Index in AUD).
AIM employs a high-conviction thematic long-short strategy, investing primarily in listed global equities, as well as selected commodities, currencies and derivatives. AIM may also choose to move the Fund’s assets entirely to cash during times of extreme uncertainty. The investment philosophy focuses on identifying key macroeconomic thematics, finding undervalued securities exposed to the thematics and looking for asymmetric return profiles. The Fund is a high conviction fund, which means we will make concentrated risk-adjusted investments in our strongest ideas.
AIM is not constrained to invest by any benchmark or index. This flexibility allows us to take advantage of a wide variety of market opportunities and invest in companies across a wide range of market sectors, industries, and geographies. Also, we have the flexibility of using a variety of listed financial instruments such as equities, commodities, and derivatives (including options), to invest in both long and short positions.
The core goal of the Fund is to compound capital and implement trading strategies aimed at minimising capital losses. The Fund has the ability to outperform in all market conditions due to its flexibility, which allows it to trade or invest in all global and domestic financial instruments and currencies from either a long or short bias.
The Fund sets a medium-term “top-down meets bottom-up” strategy. This strategy involves identifying “top-down” global macroeconomic, structural growth themes and then selecting, “bottom-up,” the best equities or instruments globally to access those structural themes. This may involve long or short positions.
We employ stop-loss parameters that are intended to limit the capital drawdown of any losing investment or trading idea. Put simply; we intend to let the Fund’s winners run and cut losing ideas quickly. AIM will also implement trading strategies aimed at minimising capital losses including moving into cash or buying derivative protection.