Investment strategy

Investment strategy

Long-Short Equity

This strategy, the most common among hedge funds, consists of taking long positions in undervalued securities and short positions in overvalued securities. Our managers are seeking to arbitrage market anomalies and can gain in bearish trend as in uptrend.

Moreover, this strategy makes it possible to benefit from a double leverage effect (double alpha effect). Long-short equity strategies may be directional or "biased" depending on the proportion of "short" positions relative to "long" positions in the fund. Thus our fund can be Dedicate Short if it is composed only of "short" positions, or Long Biaised if the amount of its "long" positions exceeds that of the "short" positions.

The fund may also be non-directional but "Market Neutral", ie the amount of its short sales covers the amount of its "long" positions, which implies to permanently shift the proportions of assets " long "and" short "to adapt to stock fluctuations. This type of long-short Equity strategy is suitable in case of high volatility of the markets.

Global Macro

This term includes all the directional strategies of taking positions according to market trends, and based on macroeconomic expectations such as GDP growth, interest rates, exchange rates or commodity prices. first. For example, if our managers anticipate a decline in US GDP and an increase in global oil production, they can speculate on the decline of this asset.

Managed futures

This type of strategy is generally fully computerized and relies on algorithms designed to take "long" or "short" speculative positions on future contracts on any type of support (indices, commodities, etc.). These strategies are generally based on trend-following technical analysis, from which the manager draws buy or sell signals (for example, a moving average crossover, etc.) in order to systematize its strategy. trading system which will then manage the fund in a quasi-autonomous way by following the signals.

Posted by Market Analysis Services from Horton Exchange