GLG Alpha Novus
GLG Alpha Novus Strategy (the ‘Strategy’) is a long-short Strategy that aims to generate alpha by combining fundamental stock analysis with top-down, thematic views to identify mis-priced stocks. The key characteristics of this Strategy are:
- It seeks to take advantage of structural changes in the global economy
- Aims to maximise alpha generation through longer holding periods
- It is a long-short portfolio with limited market exposure
- Experienced investment team
Approach
Investment opportunity
GLG Alpha Novus is a long-short strategy that aims to take advantage of structural changes taking place in the global economy. The team believes this to be a long-term opportunity as markets tend to underestimate the duration of structural changes on share prices. In addition, the Covid-19 pandemic, shift to passive investments as well as Brexit have all combined to increase market inefficiencies and this has led to significant valuation dispersion within the UK equity market.
Some of the key structural changes that the team will look to take advantage of are:
- Transition to hybrid working patterns
- Digital penetration
- Government outsourcing
- ESG considerations
- Capacity reduction across industries
Investment universe
The portfolio aims to generate alpha through its long and short holdings, with returns that are uncorrelated to traditional and alternative asset classes. In order to achieve this, the managers combine fundamental stock analysis with top-down, thematic views to identify mispriced stocks. The portfolio of between 60-100 stocks will have a bias towards large-cap UK equities, with some exposure to mid- and small-cap stocks.
These risk guidelines and/or limits are provided for information purposes only and represent current internal risk guidelines. There is no requirement that the Strategy observes these limits, or that any action be taken if a guideline limit is reached or exceeded. Internal guidelines may be amended at any time without notice.
Experienced investment team
The portfolio managers have worked together since 2009 and are assisted by five dedicated analysts. In addition, they are able to make extensive use of Man Group’s broad research capacity, leveraging the expertise of equity specialists, the credit business and the multi-asset platform.
Track record
The portfolio management team have an established track record within the GLG Alpha Select Strategy, which they have managed since Jan 2013.
| Approach | Alternative |
| Asset Class | Equity |
Investment Solutions
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.
UCITS
Alternative investment funds
US 40 ACT
Regional funds
Separate accounts
Advisory mandates
Managed accounts
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.
Considerations
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.
Total Return - Whilst the Strategy aims to provide capital growth, a positive return is not guaranteed over any time period and capital is in fact at risk.
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