Boston-based Acadian Asset Management has launched a highly leveraged equity long-short fund that aims to neutralise exposure to the direction of equity markets.
Domiciled in Dublin, the Global Leveraged Market Neutral Ucits fund will use typically more than twice the value of the underlying capital in leverage.
The fund will take long and short positions from a universe of more than 40,000 stocks, aiming to balance its long and short positions so it is immune to the effects of a rising or falling market. The fund managers hope to generate returns by stock selection.
“Markets are at historic highs, which may indicate that a correction is likely in the near term,” says Alex Voitenok, director of long/short strategies at Acadian Asset Management. “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.”
Acadian launched its first market neutral strategy in the US in 2005.
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