Investment Objective
A long-short, style agnostic, fundamentals-driven strategy that aims to capture turning points in relative earnings revisions. The core philosophy behind the long book is to identify stocks with the best potential to deliver earnings surprises relative to expectations, while the short book aims to generate alpha by shorting those expected to miss earnings. The fund also looks to identify and invest in intra factor (country, sector, style) pair trades based on expected future relative earnings revision potential.
Latest Meeting Note
Meeting 09 Feb 2021
The Man GLG Asia Pacific (ex-Japan) Equity Alternative fund is a fundamentally driven, high conviction market neutral strategy focussed on the Asia Pacific region. The portfolio is run by Andrew Swan who joined Man GLG in August 2020 (pr...
The Man GLG Asia Pacific (ex-Japan) Equity Alternative fund is a fundamentally driven, high conviction market neutral strategy focussed on the Asia Pacific region. The portfolio is run by Andrew Swan who joined Man GLG in August 2020 (previously at BlackRock, managing over $25bn), and is supported by a dedicated team of 4 experienced analysts. The team aims to capitalise on earnings revisions (a key alpha driver in the region according to the manager) both long and short. On the long side, the team looks at stocks with potential to deliver earnings beats, while on the short side they focus on those companies which show low relative earnings revision potential or that are expected to miss. The team’s earnings revisions views are typically based on both historical data and forward looking indicators, with the PM combining in-depth bottom-up analysis and management meetings to shape these views. Top-down macro considerations also play central role, with the PM actively tilting the portfolio towards the best available opportunities (styles, sectors and countries). The final portfolio is relatively concentrated, with 50-100 positions (evenly split between longs and shorts, there is a preference for mid-caps), and is run with a conservative net (-/+20%) vs. 100-200% gross exposure, with the PM targeting a minimum 60-65% of stock specific risk at any one time. The short book can be complemented by the use of index hedges (up to 50% of the gross short exposure). At the individual position level, the average holding period can vary from 3-6 months to 6-12 months (longer term trades are informed by the team’s fundamental view on the company as opposed to shorter-term earnings trends).
Performance
JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV | DEC | YTD | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2023 | 0.1 | 0.7 | 0.5 | 0.4 | 1.0 | 0.0 | 0.1 | 0.0 | 0.8 | 1.0 | 0.4 | 0.2 | 0.9 | |
2022 | 0.4 | 0.3 | 0.4 | 0.3 | 0.4 | 0.5 | 1.0 | 0.7 | 0.5 | 0.6 | 0.1 | 0.4 | 0.7 |