Schroders is launching a UCITS hedge fund product via its GAIA platform – the Schroder GAIA Two Sigma Diversified – which will be sub-advised by Two Sigma Advisers.
Created by Two Sigma Advisers, in collaboration with Schroders, the fund’s strategy combine US equity market-neutral and global macro strategies.
The fund aims to offer investors portfolio diversification through a liquid alternative strategy that intends to be uncorrelated to traditional equity and bond markets.
The strategy will apply a scientific and algorithmic approach to investing across thousands of individual equities and hundreds of macro markets, allocating the majority of the fund to the equity market-neutral strategy.
Geoff Duncombe (pictured), chief investment officer of Two Sigma Advisers, says: “Two Sigma’s platform approach leverages data and technology expertise to create solutions that meet the needs of diverse investor groups. We are thrilled to partner with Schroders, which has built a preeminent UCITS platform, to bring investors portfolio diversifiers that seek to deliver controlled volatility, low correlation to markets, and attractive risk-adjusted returns.”
Eric Bertrand, head of Schroders GAIA, says: “We continue to see very strong demand for liquid alternative investment strategies, as clients seek to diversify their portfolios. We’re delighted to partner with Two Sigma to launch this newly created strategy specifically tailored to meet these needs, with the aim of delivering alpha. Two Sigma has a strong reputation in the field due to its leading technology expertise and creative, research-driven approach, which allows the firm to design and evolve intelligent systematic strategies.”