Monday 19 March saw New York-based GSB Podium Advisors launch a UCITS version of its global market neutral equity long/short strategy, prior to which it had been running solely in the form of three managed accounts. The GSB Equity Market Neutral (UCITS) Fund has been designed to replicate the systematic strategy whose genesis dates back to 1997 when GSB founder Shengbei Guo (pictured) ran Deutsche Bank’s equity statistical arbitrage trading desk. The strategy uses a series of price mean reversion and price momentum models to trade a universe of 3,000 global stocks. The UCITS fund offers daily liquidity and will run pari passu with GSB’s other investment vehicles. Guo founded GSB Podium Advisors in 2010 after previously running Deutsche Bank’s equity statistical arbitrage trading desk between 1997 and 2005, running the Deutsche Bank Noetic Equity Long/Short Fund from 2005 to 2008. He then worked as a CIO at Galleon Quantitative Management running the Galleon Quantitative Statistical Arbitrage Fund before deciding to establish his own fund.
London-based Alpha UCITS has been selected to host the fund on its dedicated UCITS platform. The strategy has returned on average 8.77 per cent annually from January 2005 until February 2012 and returned 2.47 per cent net in 2011. The strategy was up 5.02 per cent at the end of February. Commenting on the fund’s launch, Guo was quoted as saying: “We are very excited about the launch of the GSB Equity Market Neutral Fund. Our fund tries to offer investors consistent returns with low correlations to equity markets and other hedge fund strategies. We believe that both trending and volatile market conditions may offer good trading opportunities for our strategy.”