The Fulcrum Thematic Equity Market Neutral Fund seeks to deliver capital growth over the long term by investing in listed global equities and equity indices directly or through derivatives in a rigorously market neutral manner. The Fund aims to maximise returns with a target volatility of 6-8% with low correlation to global equity markets.
Latest Meeting Note
Meeting 12 Oct 2020
The Fulcrum Thematic Equity Market Neutral Fund was launched in early August 2020 with c. $120m and is a direct carve out of the strategy from the Fulcrum Diversified Absolute Return Fund. The fund is a fundamental, discretionary equity ... Read more
The Fulcrum Thematic Equity Market Neutral Fund was launched in early August 2020 with c. $120m and is a direct carve out of the strategy from the Fulcrum Diversified Absolute Return Fund. The fund is a fundamental, discretionary equity strategy that captures long-term (2-5 year) themes in a beta neutral manner. The fund looks to maximise net returns with a volatility of 6-8%, with strict management of the net (+/-20%) while running a gross of <300%. The portfolio is highly diversified across 20-30 themes and invests in publicly-traded stocks, plus sector and country indices and options. Fawaz Chaudhry (ex-Moore Capital) leads the thematic equity team, building upon 10 years of experience running a thematic equity strategy. The investment philosophy focuses on the impact of long-term trends (economic, technological, demographic, social, regulatory and consumption), while also looking to capitalise on the second and third-order effects of structural trends as well. On average a theme is present in the portfolio for 74 weeks and the objective is to maximise exposure to the theme in a highly diversified manner, with the team seeking to maximise the number of constituent members within a theme. Themes can either be long or short vs an index and also relative value in nature. Some of the current themes (at the time of writing) include; Long China Technology, Long Gold Royalties, New vs Legacy Payments, Short Physical Retailers, Short Global Airlines, LNG Producers vs Pipelines).