ARCO fund recommended by Zenith



Zenith Investment Partners has started coverage of ARCO Investment Management’s Absolute Return Fund and has awarded it a ‘recommended’ rating.
The fund, which has been managed by ARCO since 2008, aims to provide investors with returns through its fundamental approach to stock picking, coupled with an overarching focus on preserving their capital through the market cycle.
Zenith praised the fund’s highly experienced investment team and the conservative nature of the fund, which was a “unique Australian equity market neutral offering”.
ARCO co-founder and co-portfolio manager, George Colman, said the strategy was started two hours after Lehman Brothers had triggered the Global Financial Crisis in 2008 by filing for bankruptcy, allowing the fund to gain “real-world experience in protecting and growing investors wealth during both normal and completely abnormal market conditions.”
“We believe that our absolute return approach to Australian equities is an absolutely sensible part of any investor’s portfolio throughout any market cycle,” he said.
“We say this because our objective is to consistently deliver returns to our investors in absolute positive terms, not relative to a market benchmark, which can be both volatile and negative at times.”
Recommended for you
Retailisation of private markets such as evergreen funds may seem like appealing options for wholesale and retail investors, but providers risk undermining trust if their products are unclear.
Ethical investment manager Australian Ethical has seen its funds under management rise by a third over FY25 to close out the year at $13.9 billion.
BlackRock Australia’s head of intermediary distribution James Waterworth has taken up a new distribution role at an alternative asset manager, while Antipodes has hired a distribution director.
BlackRock’s iShares ETFs have reported a record first half for inflows, gaining US$192 billion in the past six months, to see overall ETF assets under management rise to US$4.7 trillion as it launches its first active ETF in Australia.