K2 asset management

Hi everyone

A few weeks ago the company announced that K2 had sold down their holding in ZIP. This was rightly not seen as a positive signal that the largest shareholder had sold its position.

I have done a tiny bit of research…

K2 own ZIP in their Australian Small Cap fund.

The most recent quarterly report is available here:

http://www.k2am.com.au/docs/monthly-report-small-cap-30-sep-2015.pdf

And what stands out?? At the end of September ZIP was the largest holding of the fund!

While they didn’t sell at the high, its entirely plausible and sensible that K2 would sell down some of this exposure as it was probably out of kilter with their fund risk parameters.

Knowing that it was their largest holding it is no surprise to me that they have sold down a little and this does not ring any alarm bells to me.

Cheers