Hedge Fund Solutions

This hedge fund’s systematic investment strategy eliminates emotional factors, which can have an adverse effect on discretionary portfolio management. This approach promotes consistent trading in different markets, with no long/short bias. The strategy covers over 400 markets and a large portfolio of single name equities. Overall, the portfolio has an average holding period of 35 days per trade, with an investment signal allocation of 80% trend following, 10% carry and 10% diversifying strategies (sector-specific- and quantitative macro models).

The focus is on extracting the benefits of diversification through signal and market selection from exotic and spread markets across all major asset classes. Through diversification away from crowded markets and from signals typically traded by managed futures managers, the firm aims to mitigate some of the effect of increased competition, as not many rivals have the operational experience to trade across such a wide breadth.

This hedge fund’s beta-neutral equity strategy seeks to outperform its cash benchmark through a systematic, risk-controlled approach and has an established track record of alpha generation across different market environments. The investment manager combines sound investment intuition and research with rigorous quantitative tools to identify mispriced stocks around the world. The investment universe includes more than 10,000 securities across market capitalizations and regions, including developed, emerging and frontier markets.

The manager believes that for information to be applicable in an active investment process, it must be both relevant to share prices and slowly reflected in share prices. The most valuable insights for forecasting equity returns are often found by observing information pertaining to related securities. This information is not as obvious and, as a result, is generally reflected more slowly in share prices.

This hedge fund is a hard catalyst equity merger arbitrage specialist. It predominantly invests in strategic acquisitions, publicly speculated acquisitions, leveraged buyouts or take-privates, tender offers, exchange offers, proxy contests and other M&A-related transactions. Trades are generally structured to generate attractive investment returns driven by a distinct catalyst and/or event that is expected to be uncorrelated to broad market movements. Trade ideas are sourced on a global basis with an emphasis on North America and Western Europe.

The team has a track record of investing in complex transactions that require an extensive understanding of global regulatory approval processes and fundamental valuation analysis. Their expertise lies in the ability to identify catalysts along a timeline and predict how securities will react to those catalysts. Each catalyst represents a unique trading opportunity. Examples of potential catalysts include regulatory approvals, shareholder votes and debt financing for leveraged buyouts.

This hedge fund’s investment strategy is European equity long/short with a focus on materials, financials and cyclicals. The manager uses a medium-term investment horizon but trades with a short-term horizon. The portfolio is composed of very liquid securities, which is key given the active trading style of this hedge fund. The net exposure of the fund is flexible and there is no natural inclination to be either long or short. Risk management is key to the strategy and exposure is scaled to profits and losses, meaning that overall risk in the portfolio is increased when the manager is making money and vice versa.