- The strategy is designed to find the best way of capitalising on idiosyncratic risk alpha
- Internal multi-manager structure
- Stock pickers operate in an autonomous but collaborative environment, supported by the specialised expertise and insights of their experienced colleagues
- Rigorous portfolio construction is a key feature of the strategy
- The strategy seeks positive returns by investing primarily in listed shares and related instruments of shares listed in Europe, or of issuers which derive a substantial part of their revenues from Europe
- The strategy will pursue a long-short approach whereby, in addition to buying and holding assets, it may use financial derivative instruments
- The strategy is actively managed; no benchmark is used as a universe for selection or for performance comparison purposes.
The GLG European Long Short (‘ELS’) strategy is a market neutral, equity long-short approach that targets idiosyncratic or stock specific alpha that launched in October 2000. As a multi-manager platform, the strategy harnesses the investment expertise of an experienced team of portfolio managers specialised by industry, geography and investment style.
The strategy is designed to find the best way of capitalising on idiosyncratic risk alpha. This is accomplished through:
A talented team of fundamental stock pickers sourcing idiosyncratic risk alpha
Rigorous fundamental, bottom up analysis has been key to generating alpha in ELS. A talented team of stock pickers, who are specialised by industry, geography or investment style, are the source of the platform’s idiosyncratic risk alpha. These stock pickers operate in an autonomous but collaborative environment, supported by the specialised expertise and insights of their experienced colleagues. The portfolio management team’s coverage is global with a core focus on European equities.
Capital efficient process for extracting idiosyncratic risk alpha
Rigorous portfolio construction is a key feature of the strategy. The ELS Central Management team utilises sophisticated quantitative portfolio construction techniques to efficiently extract idiosyncratic risk alpha sourced by portfolio managers. The team uses a proprietary risk management system to identify and target a higher level of idiosyncratic risk at both the underlying book and strategy levels.
Rigorous, active risk management for seeking to mitigate risk
Leveraging proprietary risk management tools, the ELS Central Management team seek to identify and constrain the factor risk embedded in the portfolio. Whatever factor risk remains, along with the targeted idiosyncratic risk, is diversified mitigate risk and severity of drawdowns.
The diverse team of stock pickers is led by Ed Cole and Ikitsa Anastasov, co-portfolio managers of the platform1. Whilst the portfolio managers on the platform run autonomous books and are responsible for all stock-level research and investment decisions, the co-portfolio management team is responsible for the allocations to the underlying strategies, reviewing the performance of the underlying portfolio managers, risk management and hedging.
1. Ed Cole and Ikitsa Anastasov become co-portfolio managers of the strategy in January 2022.
Performance by calendar years
Past performance is not indicative of future results. Returns may increase or decrease as a result of currency fluctuations.
Please note that the performance data is not intended to represent actual past or simulated past performance of an investment product. The data is calculated in EUR and is based on a composite of representative investment products that follow the strategy. The representative accounts in this composite have management fees ranging from 1% - 2.75% and performance fees ranging from 15-20%.
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Man offers a comprehensive suite of investment solutions and formats that can be tailored and optimised to meet specific client needs. Our investment solutions offer optionality including: liquidity, control, investment restrictions, investor customisations and transparency.
Access to investment products and mandate solutions are subject applicable laws and regulations including selling restrictions and licensing requirements. Investment solutions listed above may not be compatible for all investment strategies and may be subject to minimum subscription requirements. Regional Funds: In additions to UCITS and AIFs registered across the EEA, a number of investment strategies are available in vehicles registered in Chile, Netherlands, Hong Kong, Japan, Singapore, South Korea and Switzerland.
One should carefully consider the risks associated with investing, whether the strategy suits your investment requirements and whether you have sufficient resources to bear any losses which may result from an investment:
Investment Objective Risk - There is no guarantee that the Strategy will achieve its investment objective.
Market Risk - The Strategy is subject to normal market fluctuations and the risks associated with investing in international securities markets and therefore the value of your investment and the income from it may rise as well as fall and you may not get back the amount originally invested.
Counterparty Risk - The Strategy will be exposed to credit risk on counterparties with which it trades in relation to on-exchange traded instruments such as futures and options and where applicable, ‘over-the- counter’("OTC","non-exchange") transactions. OTC instruments may also be less liquid and are not afforded the same protections that may apply to participants trading instruments on an organised exchange.
Currency Risk - The value of investments designated in another currency may rise and fall due to exchange rate fluctuations. Adverse movements in currency exchange rates may result in a decrease in return and a loss of capital. It may not be possible or practicable to successfully hedge against the currency risk exposure in all circumstances.
Liquidity Risk - The Strategy may make investments or hold trading positions in markets that are volatile and which may become illiquid. Timely and cost efficient sale of trading positions can be impaired by decreased trading volume and/or increased price volatility..
Financial Derivatives - The Strategy will invest financial derivative instruments ("FDI") (instruments whose prices are dependent on one or more underlying asset) to achieve its investment objective. The use of FDI involves additional risks such as high sensitivity to price movements of the asset on which it is based. The extensive use of FDI may significantly multiply the gains or losses.
Leverage - The Strategy's use of FDI may result in increased leverage which may lead to significant losses.
Single Region/Country Risk - The Strategy is a specialist country-specific Strategy or focuses on a particular geographic region, the investment carries greater risk than a more internationally diversified portfolio.
Model and Data Risk - The Investment Manager relies on quantitative trading models and data supplied by third parties. If models or data prove to be incorrect or incomplete, the Strategy may be exposed to potential losses. Models can be affected by unforeseen market disruptions and/or government or regulatory intervention, leading to potential losses.