WMK watermark market neutral fund limited

wmk (market neutral) vs alf (long-short)?

  1. 40 Posts.
    Interested to hear thoughts from those who own either of ALF or the new WMK, both LICs run by Justin Braitling.

    Essentially ALF is a variable long/short fund which can adjust its market exposure by varying the size of longs vs shorts, which has performed extremely well.

    WMK is a new LIC which will contain a similar portfolio of companies as ALF, with the key difference being that the long and short portfolios will be of equal size. This means that performance all comes down to stockpicking ability rather than general market movements.

    I'm interested to hear what people think might be more successful over the next few years. Particularly when both LICs should contain similar companies and they are run by the same people.

    I'm leaning towards ALF purely for the fact it already has an established dividend/franking stream, although I don't know how successful Market Neutral funds have been over the long term either as they aren't very common in Australia.

    Cheers
 
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