Neptune has unveiled the details for its global long/short fund managed by Robin Geffen and Ted Alexander.
Each of the global industry classification sectors will be represented by a basket of 20 to 50 large and liquid stocks that are correlated with global sector indices. Its benchmark is the MSCI world index.
The exposure of the new fund, which launches on November 1, to each sector basket will be determined by the positions of Neptune’s in-house global sector matrix and its long-only Global Equity Fund sector weightings.
The aim is to have an average exposure of 15 per cent to emerging markets in each sector to reflect the global GDP balance.
The fund is a directional fund, with the ability to go net short, or above 100 per cent long. Under normal conditions the fund is expected to be around 150 per cent gross / 120 per cent net. The net long/short positions will be determined by how bullish the Neptune house view is on the market.
Neptune deputy managing director Richard Green says: “The fund is an extension to our global equities strategy and product range, allowing us to harness the global sector views of the investment team alongside Robin Geffen’s excellent asset allocation experience. This is not a change in direction for Neptune, but rather a natural development to leverage our existing intellectual capital to actively identify sectors we believe are due to under or over perform.”
Alexander says:“We are not shorting individual stocks, and therefore the shorting risk is much lower than for long/short stock funds. By shorting sectors, which are diversified to eliminate idiosyncratic or stock-specific risks, the fund should have a lower volatility and potential value at risk.”