Candriam Investors Group, a European multi-specialist asset manager, has launched a new absolute return Systematic Long Short Equity strategy.
Five different quantitative models are used in this strategy with the aim of creating a performance driver suitable for all market conditions. The strategy allocates the same risk budget to each model in order to obtain the best possible diversification and thus generate an absolute return with little correlation to the equity markets in which it invests.
The mathematical models deployed in the new fund have been developed over 18 years, being first introduced in 1997.The strategy targets returns of around 8 per cent to 12 per cent over a three-year investment period, under a controlled risk budget with target volatility of 10 per cent. The new fund was first made available to investors in December 2014.
Steeve Brument, Head of Systematic Funds, says: "We are pleased to offer a new Long Short Equity strategy that truly stands out in its category. Through our management of quantitative models that have proven their merit over several years, we have successfully created a combination of models both innovative and specific to the global equity markets. At a time of so much macroeconomic and geopolitical upheaval, this approach takes advantage of trends as well as volatility in the equity markets. The Systematic Long Short Equity strategy is thus a highly original equity investment solution with several benefits: controlled risk, an absolute return target, a low correlation objective and daily liquidity.”