INVESCO Launches Three 130/30 Strategies

Apr 16 2007 | 11:30am ET

INVESCO’s Global Structured Products Group recently launched a trio of 130/30 strategies with combined assets of $515 million. The three strategies include a large-cap core directional long/short strategy benchmarked to the MSCI U.S. Index, a small-cap core directional long/short strategy benchmarked to the Standard & Poor’s SmallCap 600 Index and a large-cap growth directional long/short strategy benchmarked to the Russell 1000 Growth Index.

INVESCO made the new offerings in direct response to its institutional investors “needs and demands for higher alpha tied to the efficient use of capital,” said Russ Kamp, CEO of INVESCO’s global structured products group. 

“These strategies are a natural bridge between our long-only portfolios and our market neutral capabilities which have been in use for 23 and 14 years, respectively,” he said. The money in the new funds comes from mandates it received from its pension and foundation investors.

Currently, $250 million is in the large-cap core strategy, $45 million is in the small-cap core strategy and $220 million is in the large-cap growth strategy, according to the firm. All are team managed by the global structured products group, which also manages all of INVESCO’s market neutral strategies. Jerry Lefkowitz is head of portfolio constructing and trading and Stuart Kaye is head of research.
The minimum investment requirement for all three strategies is currently $25 million. Fees are based on forecasted alpha, according to the firm, and are equal to 25% of the forecasted alpha at the initial breakpoint.

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