The Dublin-domiciled GLG Financials Alternative fund has a global mandate and targets absolute returns and low market correlation by investing in a portfolio of between 30 and 60 financials stocks.
Run by David Sanders and Stephen Holliday, the managers of the $70.9m (£44.2m) hedge strategy, the fund will be net market neutral overall. Sanders and Holliday will pick stocks by using proprietary in-house research combined with pro-active risk management.
Sanders says there is an abundance of market neutral opportunities within the financials sector owing to various macroeconomic, regulatory and stock-specific factors.
The manager says they plan to take advantage of the large number of capital raises, government stake sales and initial public offerings which are due to come to the market over the next few years.
“Our strong in-house expertise and analysis provides us with the tools to identify opportunities in a sector where there are relatively few specialists. This has enabled us to outperform, with a market-neutral approach, in what has been a turbulent market,” Sanders says.
“We are confident that we can continue this success and are happy to be able to bring the strategy to a wider client base.”
Rhodri Mason, the head of Ucits management at Man, says Ucits funds will remain a key area of focus for the group.
“We are pleased to be adding GLG Financials Alternative to our expanding range of absolute return Ucits funds, demand for which remains strong,” he says.
Minimum investment in the GLG Financials Alternative fund is £1,000.
The hedge fund – which was launched in May 2002 – has returned 4.31% over the year to February 29, according to GLG.
The strategy’s largest geographical overweight is to Europe ex-UK, with a 68.6% weighting, followed by Asia ex-Japan and North America with positions of 11.6% and 9.9% respectively.