Little Harbor Advisors is launching a multi-manager, short-only hedge fund to capitalise on perceived market vulnerabilities, with a particular focus on financials, real estate, private equity vehicles and solar energy, according to a report by MorningStar.

The Short Alpha Composite II strategy will combine several managers’ approaches, targeting individual stocks based on fundamentals, technicals and volatility.

The fund will also take selective long positions, including gold, as a hedge against dollar weakness. Little Harbor aims to exploit what it describes as “heightened uncertainty and mounting systemic risk” to generate returns in the event of a market correction.