Wednesday, 10 February 2016
Last updated 7 hours ago
Feb 18 2014 | 1:06pm ET
Boston Partners, the Robeco Group's value equity arm, launched a global long/short mutual fund in January.
Managed BP's co-CEO and CIO Jay Feeney and Christopher Hart, who manages global and international equity funds for the firm, the Robeco Boston Partners Global Long/Short Fund has a similar investment process to the U.S. stock version, the Robeco Boston Partners Long/Short Research Fund, with a wider global opportunity set. The new fund will have least 40% invested in undervalued international stocks. Josh Jones, an associate portfolio manager, is also a co-manager of the fund.
The U.S. stock version, launched in 2002, manages over $3 billion, having attracted $2.1 billion of that in 2013. Both it and the new global version have long positions ranging from 90-100% of the portfolio and 30-60% short, comprising over 200 stocks positions spread across industries.
“Initially, we started the Long/Short Research Fund internally as a vehicle for our research analysts to implement their best ideas, both long and short,” said Boston Partners’ co-CEO and CIO Feeney. He notes that nine of the firm's analysts each manage a sleeve of the portfolio, with himself and Eric Connerly at the helm.
“When we saw the strategy’s potential, we decided to introduce it to the public in 2010 as a ‘40 Act fund. It was a natural extension to create a global version this year in response to client interest in a truly global long-short portfolio and the significant investment capability that we have developed in international markets. Designed to protect capital in falling markets, the Long/Short Research Fund’s popularity has exceeded our expectations. We’ve benefited from the movement embraced by advisors and individual investors toward finding reliable, transparent and high performing ‘liquid alternatives’ to hedge part of their portfolios.”
Boston Partners launched its first long/short equity fund in 1998—an all-cap strategy managed by Bob Jones and focused on small and micro-cap investing. It closed to new investors when it hit $500 million in assets under management in 2010.
Boston Partners manages about $5 billion in long/short strategies and about $50 billion overall in value equities.