# WMK - Watermark Market Neutral Fund



## System (18 July 2013)

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.

http://www.wfunds.com.au/fundprofiles/watermark-fund-overview.aspx


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## So_Cynical (31 October 2014)

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.
~


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## qldfrog (31 October 2014)

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....


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## Panaman (31 October 2014)

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………  

https://www.aussiestockforums.com/forums/showthread.php?t=29086


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## System (30 April 2019)

On April 29th, 2019, Watermark Market Neutral Fund Limited (WMK) was removed from the ASX's Official List at the request of WMK, following implementation of the scheme of arrangement between WMK and its shareholders under which the Watermark Absolute Return Fund acquired all of the assets of WMK.


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## qldfrog (30 April 2019)

Another nice scam in other words


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## So_Cynical (30 April 2019)

qldfrog said:


> Another nice scam in other words




How so? the final NTA was 0.863 cents per share and thats what was transferred to holders via new units in the unlisted fund, with dividends 
holders from the IPO at $1 have come out about even (less inflation) hardly a scam - noted that managers always get paid regardless.


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## qldfrog (30 April 2019)

So_Cynical said:


> How so? the final NTA was 0.863 cents per share and thats what was transferred to holders via new units in the unlisted fund, with dividends
> holders from the IPO at $1 have come out about even (less inflation) hardly a scam - noted that managers always get paid regardless.



break even since ipo during one of the longest long market in history, value going down on any down trend (I remember when I owned) whereas the only purpose of this fund was to increase/not loose in such case...
Did you own?


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## So_Cynical (30 April 2019)

qldfrog said:


> break even since ipo during one of the longest long market in history, value going down on any down trend (I remember when I owned) whereas the only purpose of this fund was to increase/not loose in such case...
> Did you own?




Its a Market Neutral fund, it does not go up with the market and it was never meant to - market neutral.

I sold a long time ago, there have been many worse investments.


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## qldfrog (30 April 2019)

Exactly, 
was supposed to not go down with the market 
but it was, actually usually worse than the asx200 movement, and was not by design going up with the index...
So down with the market but not up
And i was paying huge fees for these geniuses to do that with my money.a TD was better and safer
I maintain this was a scam more than anything at least for the period i held 
Do not worry, there are much worse


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