banter and General Discussion, page-17407

Regal australian small companies fund . 500m


chat explanation

The image you've provided shows a performance and positioning summary for a Regal fund, including: Breakdown:---1. Attribution of Alpha for March 2025This chart shows how much each sector contributed to the fund’s performance in March.Health Care (Short):Health Care is one of the few sectors that contributed positively in March, and interestingly the gains came from short positions in that sector.The bar chart shows a positive contribution of approximately +9% from shorting Health Care.This means the stocks Regal shorted in Health Care went down significantly in value, creating profits.---2. Balance Sheet Exposures (% of NAV)This table shows how much of the fund is long or short in each sector, as a % of the fund's Net Asset Value (NAV).Health Care:Long: 15% of NAVShort: 6% of NAVNet Exposure: 9% (i.e. long minus short)Active Exposure: 4% (vs benchmark)So they have:$75 million long in Health Care (15% of $500m)$30 million short in Health Care (6% of $500m)--- What’s happening in Health Care?Regal was both long and short Health Care stocks in March.The short positions performed very well, contributing to fund alpha (positive return), as seen in the top graph.The longs were likely flat or underperformed, or less significant in attribution.This reflects a long/short strategy, where the fund:Bets on specific winners and losers in the same sector.Seeks to generate alpha from stock selection rather than broad sector exposure.---Summary:Regal had $30 million short and $75 million long in Health Care.Their shorts made significant positive returns in March, while other sectors performed poorly.This shows that their stock-picking in Health Care shorts was highly successful, possibly offsetting some of the fund’s broader March losses (–14.53% overall).Let me know if you want help interpreting the other sectors or performance trends.