Trafalgar Copley rises on credit short bias

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Going into the summer net short paid off for the Trafalger Copley fund, which gained 4.64% for the month after gains of 10.05% in July and 3.42% in June. Year-to-date the Australia and New Zealand equity and credit fund is up 34.98% and the Australian dollar class has not had a down month this year so far. The net short position arose from a belief that debt cannot be fixed with debt, and that deleveraging is a necessary path, explains Trafalgar Copley’s David Copley.

Because the fund invests in both equity and credit Copley has observed the deterioration