New York-based GSB Podium Advisors has launched a global equity statistical arbitrage UCITS fund on the U.K.’s Alpha platform.
The long/short GSB Equity Market Neutral (UCITS) Fund uses share price mean-reversion and price momentum-based trading across a universe of more than 3,000 stocks globally. The portfolio includes positions in the U.S., Europe and Asia-Pacific markets and the fund offers daily liquidity.
GSB founder Shengbei Guo ran Deutsche Bank’s equity statistical arbitrage trading desk from 1997 to 2005. He managed the same strategy for the Deutsche Bank Noetic Equity Long/Short Fund from 2005 to 2008. At its peak the strategy managed over $600 million. After a brief stint as CIO at Galleon Quantitative Management running the Galleon Quantitative Statistical Arbitrage Fund, Guo launched GSB Podium Advisors in 2010.
The strategy has returned on average 8.77% per year from January 2005 until February 2012, for a standard deviation of 6.48% per year. It returned 2.47% net in 2011 and is up 5.02% YTD as of the end of February. The UCITS fund will trade pari passu with the other GSB vehicles.
Said Guo in a statement: "We are very excited about the launch of the GSB Equity Market Neutral Fund, making our flagship strategy available to UCITS investors. Our fund tries to offer investors consistent returns with low correlations to equity markets and other hedge fund strategies. We believe that both trending and volatile market conditions may offer good trading opportunities for our strategy."
Alpha UCITS is a London-based UCITS platform founded in 2009 by Stephane Diederich, formerly a Partner at Brevan Howard Asset Management.