Man Group, the world’s largest listed hedge fund firm, has launched two additional ETFs, Man Active Emerging Markets Alternatives ETF (MEMA) and Man Active Trend Enhanced ETF (MATE) bringing the firm’s ETF offering in the US wealth market to four funds.
MEMA will invest, under normal circumstances, at least 80% of its net assets, plus any borrowings for investment purposes, in equity and equity-related securities of emerging market issuers. The fund generally considers emerging market countries to be those represented in the MSCI Emerging Markets Index.
The fund’s strategy is to identify stocks with prospects of long-term value creation often missed by short-term oriented investors and will objectively evaluate company fundamentals and intangibles using data-driven models, and advanced machine-learning with human oversight. With the experience of the portfolio management team, the fund will seek to systematically solve for return, risk and implementation costs, delivered typically in a 130/301 strategy profile.
Daniel Taylor and Ben Zhao are the portfolio managers primarily responsible for the day-to-day management of MEMA. Taylor brings almost three decades of investment experience that includes overseeing small cap and hedge fund strategies and serves as a senior member of the strategic alpha research team. Zhao brings over a decade of investment experience in quantitative research, machine learning and leading long horizon strategy efforts.
MEMA’s model systematically aims to identify companies to invest in for the long-term, size them with systematic risk optimisation, and trade them in a tax efficient and low-cost way. The fund focuses on predicting longer-term value creation, forecasting earnings surprises three years into the future with statistical significance. Its investment themes include earnings quality, business risk, valuation (tangible and intangible), investor insight, industry dynamics, growth potential, and alternative insights.
