Pictet seizes on global stock market mispricing surge with new hedge fund launch

Trading

Pictet Asset Management, the investment management arm of Geneva-headquartered wealth management giant Pictet Group, is tapping into the surge in global stock market mispricings with a new hedge fund strategy that takes a higher risk, higher return approach.

The Pictet TR-Atlas Titan fund is a directional long/short global equity strategy which trades on opportunities arising out of mispriced equities across both developing and emerging markets, using a mix of top-down macro analysis of business cycles across geographies and sectors and bottom-up fundamental stock selection.

The fund has adapted Pictet’s existing TR-Atlas strategy to target those investors seeking a higher level of risk in order to achieve higher returns. Specifically, it aims to generate performance in the mid-to-high single-digits, net of fees, and achieve long-term capital growth and capital preservation in down markets, with mid-single-digit volatility.

The fund is managed by senior investment manager Matthieu Fleck – who led the launch of the original TR-Atlas strategy in November 2016 – along with a Geneva-based team comprising Adrien de Susanne d’Epinay, Yassine Fki and Philip Wilson.

“Global equity markets continue to be volatile, driven by increasingly short business cycles, ongoing uncertainty and distortions from unprecedented levels of central bank and government intervention,” Fleck said of the new launch.

“This underlines the case for our long/short approach, which takes account of the top-down environment to drive our portfolio positioning and identifies where we are best rewarded to take risk, combined with rigorous bottom-up stock analysis to assess the relationship between price and fundamentals.”

The UCITS compliant fund is the latest addition to Pictet Asset Management’s USD10.6 billion Total Return fund range.

It joins the equity long/short directional funds Corto, which trades European equities, the Greater China equities-focused Mandarin, and Atlas (global equities), the event driven/fixed income-focused Pictet Distressed and Special Situations fund and Sirius, which trades EMD long/short fixed income. Also in the range are three market neutral hedge funds: Agora, which trades European equity; the multi-strategy-focused market neutral Diversified Alpha fund; and Aquila, which trades global equities.