GLG Innovation Equity

The GLG Innovation Equity strategy is a global long-short approach which aims to generate absolute returns by seeking opportunities in companies or sectors undergoing change or innovation.
  • A focus on securities in areas of change and innovation where research can often be inefficient
  • Emphasis on sectors and investment areas that offer significant long and short opportunities through the cycle
  • Returns sought from stock picking alpha and effective risk management
  • Deep synergies with Man GLG’s Equities stock picking team – numerous sector specialists provide an analytical edge

Approach

The team searches for companies within sectors that are particularly susceptible to the forces of change and innovation, most notably in technology, consumer discretionary, telecoms and industrials. Companies exhibiting these criteria are often mispriced as consensus sell-side estimates and expectations typically lag the effect of change or innovation. Additionally, these sectors have lower intra-sector correlations and the securities are more driven by micro fundamentals than macro, which lends itself well to building a diverse, risk optimised portfolio.

The team has a strong fundamental approach to stock selection and employs a clear bottom-up process for identifying and investing in target companies. A key principle of the process is the continuous feedback employed by the team at every step to ensure that all decisions are continually assessed and monitored from multiple angles.

Principally, investment analysis is focussed on understanding and analysing business direction and the sustainability of current trends within key companies and industries. Within that context, the team then seeks to monetise either the change or sustainability of a trend when it believes these two factors have not been correctly understood, or priced, by the market.

The global remit allows cross border comparisons of global valuation and opportunity on an objective basis and allows the team to follow the value transfer across regions. By exploiting differing regional views and behavioural biases in sell-side coverage on companies’ prospects, the team will aim to generate significant alpha and be regionally agnostic as to the winners in global competition.

Approach Alternative
Asset Class Equity
Geographic Focus Global

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