Octagon Tactical’s shorts outperform


Over the last couple of months Octagon Tactical Short fund has come into its own, a 5.26% gain in September taking three-month returns to 10.46%.

At 100% net short, the fund was well positioned going into September. Country allocation delivered broad-based gains, but the portfolio did particularly well in Australia, Hong Kong/China and India. Stock selection in Australia, Hong Kong/China and Japan also contributed as shorts in the materials, financials and industrials sectors all paid off.

At the end of September, the fund flagged the risk of a sharp bear squeeze and the managers took profits in several