Ann: Change in Portfolio Value, page-8

"With the portfolio pretty much full hedged  (short positions equal weight to long) you can't expect them to outperform the asx when it posted one of its best monthly gains in a while. I'm more concerned when they don't beat the falling market!"

They should have at minimum had 50% of the gains of the ASX last month i.e. 2%, if that is their benchmark. That would be the minimum. However, if they had their shorts and longs right, they could still have made money on both and even outperformed the index. Their were plenty of companies bashed up in January despite the market going up.

Well their long term performance is now not solid thanks to the last 3 years. It looks like whatever gave them their initial good performance is gone (luck, quality analysts, favorable markets?). Yes, the 20% discount continues to be a temptation, but who knows how many more ticking bombs they have setup up in that portfolio that will ensure the SP will track down with the monthly portfolio losses? 200% exposure to market with proven poor performer! That was the final realization for me to get out.

Good luck with it, it may still turn around yet in the medium term, but I think the opportunity cost is also a factor, especially given the recent years performance.