WMK - Watermark Market Neutral Fund - Aussie Stock Forums

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  1. #1

    Post WMK - Watermark Market Neutral Fund

    Watermark Market Neutral Fund Limited (WMK) is a listed investment company investing predominantly in Australian securities. The Company's portfolio is managed by Watermark Funds Management, an absolute return manager with a long track record.

    In a market neutral structure, the long portfolio and short portfolio are of roughly equal value. This minimises exposure to general market movements. The performance of the fund will be the interest on the cash at bank plus the difference in performance of the two portfolios.


  2. #2
    The Contrarian Averager So_Cynical's Avatar
    Join Date
    Aug 2007
    Sydney - Muntinlupa

    Default Re: WMK - Watermark Market Neutral Fund

    I have been watching this LIC for a while now as i hold ALF who are managed by the same team, they floated at $1 last July and since then have ranged between 98c and $1.07 while paying 2 FF dividends of 0.025c

    They have a strategy of holding about 90% of funds in Govt bonds while stock picking with the other 10% via a roughly equal in size long / short portfolio of predominantly ASX stocks, Management fee of 1% and a 20% performance fee if they beat the RBA cash rate...so fair to say they have set the performance fee achievement bar fairly low there.

    So far they have achieved a 6.1% PA return since inception, anyway with the recent market weakness and going ex dividend earlier in the month the stock was getting over sold so i decided to take a position last week when the SP broke below 95c.

    So far so good with the small bounce of this week...chart action would indicate that this stock is tradable for a contrarian portfolio builder such as myself.
    Attached Images
    Statistics: 172 Closed Trades since July 07, Trades: Winners 135 - Losers 37, Expectancy/$1 Risked: $0.78

  3. #3

    Default Re: WMK - Watermark Market Neutral Fund

    as per name, this is supposed to be a market neutral fund yet it kept following the down (should have gone up then)
    yet does not go up when the asx surges.
    very disappointed to be honest;
    I bought some as a buffer (supposely Market Neutral edge) for my portfolio, did not behave in the expected way....
    would have been better buying telstra....

  4. #4

    Default Re: WMK - Watermark Market Neutral Fund

    Check out the directors of this LIC? and which LIC those directors run/or are a directors of, another example were the same names pop up!!!

    Jobs for the boys………


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