VG1 is another disappointing long/short fund, looking at their performance YTD. YTD, their NAV has decreased by 20 %, while their net equity exposure was only 75 % at 31/12/21.
Apparently, their main mistakes were : - 100 % AUD exposure (at 31/12/21, same today), - long exposure mainly on tech and defensive (portfolio has apparently not changed much since 31/12/21). Once again, the company has done well mainly with its short exposure. At the end of April, they said that their short contributed 6.3 % to their performance calendar YTD, giving 2 examples (short US housing exposure and short a basket of expensive loss making tech).
Anyway, it does not answer the question whether it may be interesting to buy it now. In fact, I see a lot of interesting elements : - their high exposure to tech and defensive may be interesting again, as long term rates are correcting, - their net equity exposure of 46 % seems reasonable given the remaining risk on the market. - still active share buyback to limit the discount to NAV. The only disappointing element is that, they are an international equities fund manager, but can't benefit from USD increase as their net currency exposure is 100 % AUD.
So, overall, I expect them to get absolute performance both from their long exposure and their short exposure.
