Thursday, 28 August 2014
Last updated 6 hours ago
Feb 15 2008 | 7:00am ET
Toronto-based Hillsdale Investment Management has begun trading a 130/30 strategy that it hopes to offer to investors within six months. The firm is in talks with Canadian institutional clients about seeding the fund.
Hillsdale began trading the strategy last June to meet growing institutional interest, as well as to capitalize on its past experience in long/short strategies.
“We’ve run long/short for nearly eight years now in the U.S. and in Canada, and it was just a natural extension,” said John Motherwell, vice president of institutional marketing. “You pick and choose your exposure and leverage and we’ll manage it.”
The 130/30 fund is currently invested in U.S. large-caps, but it also sports a U.S. small-cap component.
“The fund is composed of two components: a Standard & Poor’s 500-style neutral core with a 4% value-add target, and a 30/30 Russell 3000-style neutral overlay with a 6% value-add target,” Motherwell said. “The overall return target of our 130/30 fund is S&P 500 plus 10% optimized to an annual tracking error budget of 4% to 8%.”
It employs a factor-based, bottom up stock picking approach and is currently over-weighted in the tech, consumer discretionary and healthcare sectors of the S&P 500. The portfolio is optimized weekly, with a turnover rate of between one year and 14 months. The strategy is currently running about 80 names long and some 110 short.
In its first six months of trading, the strategy returned 6.3%, according to Motherwell.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...