Man Global Technology Equity Long-Short

Man Global Technology Equity Long-Short is a concentrated, global, low net strategy with a focus on technology and its adjacent sectors.

  • The investment team is led by Sumant Wahi, a microchip engineer turned investor with 20 years of experience working and investing in the technology industry
  • The investment philosophy is grounded in the conviction that tracking the life cycle of tech innovation from ideation (patent filings) to business model maturity (VC money flow) gives early insight on new profit pools being created and existing profit pools that will be disrupted
  • The Strategy utilises this insight to (a) invest in companies with strongest industrial logic in growing profit pools and (b) short the most fragile assets in shrinking profit pools.
  • The Strategy’s key differentiators include:
    • A multi-layered investment approach: bottom-up fundamental analysis informed by thematic thinking
    • Investment process founded on engineering DNA and strengthened by forensic accounting
    • Technology empowered: leveraging Man Group’s quantitative and AI tools

Approach

The Strategy seeks to generate alpha on both the long and short sides by navigating through an industry where the only constant is change. The tech sector is unique in that it constantly innovates and disrupts itself. Every 10-15 years, a new platform resets the tech industry, creating new profit pools and disrupting existing ones. These shifts, and the sub-themes within them, are all investment opportunities: new profit pools create opportunities on the long side, while stagnant, declining pools lead to opportunities on the short side.

It is the investment team’s view that these moves within the tech industry are predictable, and that the evolution and maturity of these platform shifts and sub-themes can be tracked over time. Identifying key trends early and then tracking the various stages of their maturing offers the first source of alpha generation in the tech sector. Knowing which themes are emerging, and where you are in the monetisation cycle, helps zone in on who the winners (or the losers) will be at that moment. This understanding of when a particular technology is going to hit the tarmac and cause economic displacement helps the investment team identify timing and profit pools to hunt for long and short positions.

 

Manager(s)

Sumant Wahi
Sumant Wahi
Portfolio Manager, Man Group

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.

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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.

Single (limited) Industries - The Strategy focusses on single (or a limited number of) industries therefore, may be susceptible to greater risks and market fluctuations than investment in a broader range of investments covering different economic sectors.