H20 Asset Management Launches New Long/Short Equity Fund

Mar 1 2017 | 8:20pm ET

H2O Asset Management has debuted a new UCITS-compliant long/short equity fund aimed at taking advantage of low interest rates.

The new fund, named the H20 Fidelio Fund, was quietly launched last fall, according to an article in Citywire, and is domiciled in Dublin. It takes both long and short positions in global equity markets across economic sectors and will seek to earn 5% annually while keeping volatility below that of benchmark equity indices over a three-year horizon. 

The fund believes the unprecedented level of dispersion among equity risk premia, driven by a market backdrop characterized by low interest rates, excessive regulation and mechanized investment strategies, presents attractive opportunities for active relative-value managers, the firm said in a statement. Meanwhile, H20’s top-down approach will allow it to take advantage of sentiment shifts, changes in correlations and and equity sector rotations. 

At the same time, the new fund will draw on bottom-up, macro-style approaches to maintain a global, judgmental, opportunistic and unconstrained style based upon a set of convictions and a search for diversification.

Since its soft-launch inception on October 25, 2016, the USD-denominated institutional share class of H2O Fidelio has returned +3.9% as of mid-February, the company added. 

Founded in 2010 by former Crédit Agricole Asset Management (now Amundi) colleagues Bruno Crastes and Vincent Chailley to focus on liquid absolute return strategies, London-based H20 is part of the multi-affiliate model of Natixis Global Asset Management. The company offers a comprehensive range of UCITS funds in global bonds, currencies and equities, serving institutional and corporate clients as well as individual investors, and manages approximately €10 billion. 

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