UBS Launches Market-Neutral Hedge Fund

Oct 27 2008 | 9:25am ET

While this may not be the ideal market to launch a hedge fund, UBS is enjoying surprising success. UBS Global Asset Management has launched the U.S. Fundamental Equity Market Neutral fund, an equity long/short hedge fund.

The portfolio is market-, sector- and factor-neutral. It is broadly diversified, typically holding 100 to 150 long positions and 100 to 200 short positions. Since inception in March, the fund has reported a gain of 9.1%, according to public databases. 

“This is a fairly unique market-neutral strategy as all of the holdings in the portfolio are selected based on fundamental, not quantitative, analysis,” said Ian McIntosh, portfolio manager for the Systemic Alpha team. “We expect 85% or more of the portfolio’s active risk to come from security selection. We have minimized many of the factors used by quantitative managers, who comprise the vast majority of managers in this investment space.”

 The strategy offers monthly liquidity and has no lock-up period. It charges a 1% management fee and a 20% incentive fee.

UBS Global Asset Management manages some US$770 billion in traditional, alternative and real estate assets as of the end of March.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…