1.
Commentary
May continued Zone
Capital's recent months of flat or slightly negative months with accounts
posting losses of around 1%. We acknowledge that prolonged flat periods of
trading are frustrating but remind investors to exercise patience. Our risk
management is designed around preserving capital so that full advantage can
be taken of the times when our systems are in phase with the market. The
risk of this approach is that patience will be tested to the point of
withdrawing capital - usually just prior to significantly positive months.
Zone Capital defines its edge as robust systems that are well implemented in
an automated environment with pragmatic risk management. As market cycles
occur, we expect Zone Capital's systems to often go out of phase with the
market. It is our risk management that preserves capital during these times
such that potentially significant gains can be made when the market favours
our systems again. Three or four months of significant returns are enough to
generate world class returns, so long as the down months have been managed.
We believe that the equity curve of Zone Capital's track record lends some
evidence as to the effectiveness of this approach.
From a development point of view, a great deal of time has now been invested
into trialing our systems on a different electronic exchange. Initial
testing looks quite positive and Directors funds will be going live this
week. If the results with Directors funds mimic what we have seen on the
demo platform then we be moving clients across to the new platform in the
coming months.
For more information please
visit our website:
www.zonecapital.com.au
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2.
Fund Performance
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May 08 |
Apr 08 |
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%
Return
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(1.1%)
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(0.6%)
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3.
Track Record* Update
Cumulative
Performance
Summary Performance Statistics
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Since Jan 04
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Cumulative % return
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714%
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Annualised % return
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61%
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Maximum Drawdown
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18.7%
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Sharpe Ratio
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1.6
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Sortino Ratio
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5.8
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*Track Record, as presented, is based on the trading account of