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GLG launches UCITS version of flagship European equity l/s fund

July 17, 2011
- 7:55 pm

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GLG Partners, now part of Man Group Plc, this week announced the launch of their 10^thUCITS fund since July ‘09.

GLG Partners, now part of Man Group Plc, this week announced the launch of their 10^thUCITS fund since July ‘09. The GLG European Equity Alternative fund is an onshore version of the firm’s flagship GLG European Long-Short strategy and will be managed by partner and GLG co-founder Pierre Lagrange (pictured). Simon Savage, an expert in active risk management, and Darren Hodges who specializes in options trading will also be co-managing the fund. Retail investors will now have access to a high profile management team and a fund with a track record since 2000. The two key objectives of the UCITS are to deliver sustainable capital growth by emphasizing stock selection on both the long and short side across diverse investment styles and sectors. And secondly, to protect capital through effective risk management. Lagrange and Savage will ensure that the fund remains market neutral by limiting market exposure to +/- 5 per cent.

Lagrange, speaking recently to Bloomberg, said that banks would not necessarily be considered because of their being “difficult to analyse” and would focus on industrial and energy stocks. “The mixed outlook for recovery in Europe offers multiple opportunities for this strategy and we are pleased to be able to offer it more widely. Equity long-short can confer greater alpha, lower market beta and more consistent returns that traditional long-only disciplines,” said Lagrange. Savage added that effective risk management was an essential component of delivering an absolute return mandate. “This isn’t only done through balancing risk and return in the market, but also looking at human behavioural risk,” commented Savage.

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