Boston-headquartered Invenomic Capital Management has launched a new UCITS version of its US-focused long/short equities strategy.
Boston-headquartered Invenomic Capital Management has launched a new UCITS version of its US-focused long/short equities strategy.
The Invenomic US Equity Long/Short UCITS Fund rolled out last month on fund structuring and governance service provider Waystone’s MontLake UCITS Platform ICAV.
The strategy launched with USD35 million in assets, with a steady pipeline ramping up to USD100 million.
The strategy, which replicates Invenomic’s existing offshore fund, invests in a diverse range of market caps in US equities, trading long and short with a fundamental approach to stock-picking and a strong value bias, using quantitative analysis.
Established in 2015 by Ali Motamed, Invenomic’s investment approach is built around trading “fundamentally sound” companies, disciplined short selling, and diversification, described by the firm as an “essential risk management tool.”
The strategy, which aims to outperform US stock markets over a market cycle with less volatility and drawdown, has generated gains of more than 17 per cent since inception, outperforming its S&P 1500 Index benchmark.
“We have been running our strategy with daily liquidity in the US for over four years now and feel that a UCITS fund available to non-US investors is a crucial next step in the development of our business,” Invenomic founder, managing partner and portfolio manager Motamed said of the European launch.
Before founding Invenomic, Motamed was co-portfolio manager of the Boston Partners Long/Short Equity Fund.
Kenneth Sim, global head of distribution at Waystone, said: “Following a decade of clear outperformance of growth over value, we have seen a clear shift in demand from investors looking for value-tilted strategies that can generate absolute returns through alpha.”
Sim added: “In response to this, the Waystone Investment Solutions team has sourced and partnered with Invenomic Capital Management LP to bring its strong track record and expertise to the European UCITS market, which has come at a time where such value-related strategies are starting to experience their long overdue tailwinds.”
