Totus Alpha Fund Performance Summary – March 2014

The Totus Alpha Fund has turned two this month. When the fund was established the commitment we made to our investors was simple:

The fund would be performance focused with equal attention paid to both capital growth and capital preservation.

• The fund would invest only in listed and liquid securities in developed markets in industries that we understand.
• The manager and investors would be highly aligned via a significant personal (and reputational) investment in the fund as well as a commitment to reinvest post tax performance fees into the fund wherever possible.

To date we have made a solid start on that commitment. Founders Series units were up 1.4% (post fees) in March, the ASX 300 (including dividends) rose 0.2%. Over the 2 years since inception Founders Series units have risen 70.6% net of all fees equating to an annualised net return of 30.6%, almost twice the total return of the ASX 300 index (including dividends) over the same period.

That performance has been delivered with consistently low (usually negative) beta (-0.02) and correlation (-0.015) to equity markets, high alpha generation (32.2% annualised), a high information ratio (sharpe 1.94) and an excellent ratio of up months vs. down months (sortino 7.08). The fund is diversified across a number investment themes and geographies with 89 positions as at the end of march. The average market cap of stocks in the portfolio is $18.020 billion.

With organic growth and inflows firm assets under management has grown from less than $500,000 at launch to well over $15,000,000 at this time. Totus Capital now has 2 full time investment professionals, 2 part time operations staff and has engaged best in class partners for core functions such as prime broking (Bank of America), Audit (Ernst & Young), Administration (TMF Group) and middle office support (QRMO). The fund is open to Wholesale Clients.

To read the full performance summary please download the document below.