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Aquila Capital‘s Algert Global Equity Market Neutral Fund defies volatile equity markets in 2018

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The AQC1 Algert Global Equity Market Neutral Fund launched by Aquila Capital and San Francisco-based investment manager Algert Global LLC has returned 4.71 per cent to investors since its inception on 12 February 2018.

The fund ranks among the top 5 per cent in Morningstar’s alternative equity market neutral category.
 
“Considering the poor year equities had in 2018, and in particular the significant negative month of December for most equity indices, the performance of our fund is encouraging. The effort on targeting minimal correlation to general equity market returns was additive for clients in such an environment,” says Jan Bratteberg, Partner and Head of Investment Strategy at Algert Global.
 
The fund offers daily liquidity and is a UCITS-compliant equity market neutral fund. Algert Global has been managing daily liquidity equity market neutral strategies for more than three and a half years. The strategy is based on the investment philosophy of the Algert Global Equity Market Neutral Fund, which launched in 2005. In December 2018, the ACQ1 Algert Global Equity Market Neutral Fund was able to generate a return of 2.27 per cent, whereas global and national indices posted significant losses (MSCI World -10.44 per cent, Dow Jones -5.6 per cent). In the bull market of January 2019, too, the fund delivered a return of 2.23 per cent.
 
“In the current market environment, the future direction of global equity markets is increasingly difficult to predict. Countless factors point to increased uncertainty and volatility. Based on this uncertain market outlook, investors seek strategies that can provide protection against market downturns and generate returns despite market correction. The AQC1 Algert Global Equity Market Neutral Fund caters to this demand,” says Manfred Schraepler (pictured), Managing Director and Head of Financial Assets at Aquila Capital.
 
The fund aims to generate a positive return with an annualised volatility of 6 per cent to 8 per cent regardless of the stock market performance, taking long and short positions. It blends fundamental analysis with what it believes to be a disciplined, systematic investment approach and employs a diverse set of proprietary models to create a stock-specific forecast while attempting to control systematic risks. The strategy focuses on longer-term signals where there appears to be less crowding, lower decay rates and more stable opportunities.
 
Investors can access the fund via a range of share classes.
 

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