Investment opportunity

GLG Alpha Novus is a long-short strategy that aims to take advantage of structural changes taking place in the global economy. The team believes this to be a long-term opportunity as markets tend to underestimate the duration of structural changes on share prices. In addition, the Covid-19 pandemic, shift to passive investments as well as Brexit have all combined to increase market inefficiencies and this has led to significant valuation dispersion within the UK equity market.

Some of the key structural changes that the team will look to take advantage of are:

• Transition to hybrid working patterns
• Digital penetration
• Government outsourcing
• ESG considerations
• Capacity reduction across industries

Investment universe

The portfolio aims to generate alpha through its long and short holdings, with returns that are uncorrelated to traditional and alternative asset classes. In order to achieve this, the managers combine fundamental stock analysis with top-down, thematic views to identify mispriced stocks. The portfolio of between 60-100 stocks will have a bias towards large-cap UK equities, with some exposure to mid- and small-cap stocks.

These risk guidelines and/or limits are provided for information purposes only and represent current internal risk guidelines. There is no requirement that the Strategy observes these limits, or that any action be taken if a guideline limit is reached or exceeded. Internal guidelines may be amended at any time without notice.

Experienced investment team

The portfolio managers have worked together since 2009 and are assisted by five dedicated analysts. In addition, they are able to make extensive use of Man Group’s broad research capacity, leveraging the expertise of equity specialists, the credit business and the multi-asset platform.

Track record

The portfolio management team have an established track record within the GLG Alpha Select Strategy, which they have managed since Jan 2013.