The Dublin domiciled fund will aim to generate “highly valuable uncorrelated returns”, compared with market Beta, through Acadian’s system driven style of investing.
Acadian explained the fund will be market neutral in that the aggregate long and short exposures aim to be equal at the time of rebalance “neutralising exposure to the direction of equity markets, cash, sectors, country, currency, company size and a number of other factors, providing a ‘true’ market neutral approach”.
As a result of this approach, Acadian said the fund will be neutral to the market risks that may impact other parts of an investor’s portfolio, with risk concentrated in stock selection. The Fund will use leverage, typically greater than twice the value of the underlying capital, in order to amplify returns from stock selection, looking at a universe of more than 40,000 stocks.
Alex Voitenok, director of long/short strategies at Acadian Asset Management, said: “Markets are at historic highs, which may indicate that a correction is likely in the near term.
“A market downturn or increased volatility would support the opportunity for active stock selection by increasing dispersion and potentially sending some fundamentally sound stocks to attractively priced levels. A market neutral strategy is designed to be a diversifier in these circumstances, as we target zero correlation with global equity markets and seek to be neutral to market direction.”
The fund houses uses a systematic investment strategy, but one which it said is “grounded in fundamentals”. Acadian explained the technique allows it to identify systematic exposures not always obvious to a fundamental manager, but also allows for “vigorous bottom up stock picking analysis”.
The fund is registered for sale in the UK, Sweden, France, Germany, Luxembourg, Netherlands, Denmark, Finland, Italy, Norway and Singapore.
