SECOR Asset Management, an independent global investment advisory and risk management firm, has launched the SECOR Hedged Equity Fund with approximately GBP110 million assets under management (AUM) from UK-based pension schemes.
Managed by Dmitri Smolansky, SECOR’s derivatives portfolio management team leader, the SECOR Hedged Equity Fund is a protected equity solution which invests in equity put options and diversified multi-asset hedges with the objective of outperforming MSCI ACWI over a market cycle with significantly lower volatility.
SECOR has been providing similar solutions to large institutional clients in separately managed accounts since 2012. With the launch of its Hedged Equity Fund, cost managed equity downside protection is now accessible to all institutional investors.
Dmitri Smolansky, Portfolio Manager of the SECOR Hedged Equity Fund, says: “Launching SECOR Hedged Equity Fund enables small and medium sized UK and European institutional investors to access a UCITS version of SECOR’s diversified protected equity solution which was typically available to large institutional clients. This is especially compelling for investors who are sensitive to downturns and are seeking investment returns while avoiding major losses.”
“The fund will seek to add value by establishing long equity exposures and hedging out unwanted economic and market scenarios using equity, fixed income and currency derivatives. Equity downside protection can improve the risk return trade-off of a client’s equity allocation and is intended to allow upside participation whilst reducing the expected drawdown profile.”
Kam Chang, Head of Client Advisory at SECOR, says: “We are excited to be able to leverage Dmitri and his team’s skill and experience for more of our clients and to have another tool for us to deliver bespoke solutions for the market as well as for our Fiduciary Management clients. The SECOR Hedged Equity Fund will allow us to provide all our clients, irrespective of size, access to solutions that were previously only available in segregated accounts. Allowing investors to participate in equity-like returns while limiting significant drawdowns, will help to provide clients a better path on their investment journey.”
