GLG European Long-Short

The GLG European Long-Short strategy is a highly diversified, equity long-short, market neutral strategy, with a focus on investments in Europe.
  • The strategy is designed to find the best way of capitalising on idiosyncratic risk alpha
  • Internal multi-manager structure
  • Stock pickers operate in an autonomous but collaborative environment, supported by the specialised expertise and insights of their experienced colleagues
  • Rigorous portfolio construction is a key feature of the strategy
  • The strategy seeks positive returns by investing primarily in listed shares and related instruments of shares listed in Europe, or of issuers which derive a substantial part of their revenues from Europe
  • The strategy will pursue a long-short approach whereby, in addition to buying and holding assets, it may use financial derivative instruments
  • The strategy is actively managed; no benchmark is used as a universe for selection or for performance comparison purposes.

Approach

The GLG European Long Short (‘ELS’) strategy is a market neutral, equity long-short approach that targets idiosyncratic or stock specific alpha that launched in October 2000. As a multi-manager platform, the strategy harnesses the investment expertise of an experienced team of portfolio managers specialised by industry, geography and investment style.

The strategy is designed to find the best way of capitalising on idiosyncratic risk alpha. This is accomplished through:

A talented team of fundamental stock pickers sourcing idiosyncratic risk alpha

Rigorous fundamental, bottom up analysis has been key to generating alpha in ELS. A talented team of stock pickers, who are specialised by industry, geography or investment style, are the source of the platform’s idiosyncratic risk alpha. These stock pickers operate in an autonomous but collaborative environment, supported by the specialised expertise and insights of their experienced colleagues. The portfolio management team’s coverage is global with a core focus on European equities.

Capital efficient process for extracting idiosyncratic risk alpha

Rigorous portfolio construction is a key feature of the strategy. The ELS Central Management team utilises sophisticated quantitative portfolio construction techniques to efficiently extract idiosyncratic risk alpha sourced by portfolio managers. The team uses a proprietary risk management system to identify and target a higher level of idiosyncratic risk at both the underlying book and strategy levels.

Rigorous, active risk management for seeking to mitigate risk

Leveraging proprietary risk management tools, the ELS Central Management team seek to identify and constrain the factor risk embedded in the portfolio. Whatever factor risk remains, along with the targeted idiosyncratic risk, is diversified mitigate risk and severity of drawdowns.

The diverse team of stock pickers is led by Ed Cole and Ikitsa Anastasov, co-portfolio managers of the platform1. Whilst the portfolio managers on the platform run autonomous books and are responsible for all stock-level research and investment decisions, the co-portfolio management team is responsible for the allocations to the underlying strategies, reviewing the performance of the underlying portfolio managers, risk management and hedging.

 

Approach Alternative
Asset Class Equity
Geographic Focus Europe

1. Ed Cole and Ikitsa Anastasov become co-portfolio managers of the strategy in January 2022.