OMAM's Heslop's twist on market neutrality

FMF

Head of quantitative strategies at OMAM explains how it is possible to run a conviction portfolio with 400 stocks.

Launched in July 2009, the Old Mutual Global Equity Absolute Return fund has successfully navigated the choppy markets that characterised its first three years of existence. Returning 14.64% over that period versus an IMA Absolute Return sector average of 12.66%, according to Morningstar, the fund also proved itself capable of delivering positive performance during the market turmoil seen late last summer. Over one year, the vehicle, which uses a quantitative investment process to build a market neutral portfolio, has returned 5.86% versus a sector average fall of 0.87%. Here Ian H...