Man GLG Launches Sustainable Equity Long Short Fund
Man GLG, the discretionary investment management engine of Man Group, has today announced the launch of a new equity long/short fund, the Man GLG RI Global Sustainable Growth Alternative. The fund is managed by lead portfolio manager Rory Powe, who manages over $3bn in European equities and co-manages the global, long-only fund Man GLG RI Global Sustainable Growth with Virginia Nordback.
The long portfolio will comprise long-term positions in companies that already have what Man considers to be 'leading' ESG credentials or have the scope to achieve this within the managers’ forecasting period. These core names will represent 60-100% of the long portfolio and will feature companies that meet all five of the team’s investment criteria: formidable competitive leadership and purpose led culture; resilient and growing revenues; robust profitability; attractive cash flow characteristics; and full reporting on greenhouse gas emissions. The second tier, up to a maximum of 40% of the long portfolio, will feature firms that are on track to meet the criteria within five years.
The short book will aim to limit factor risk and reduce drawdown risk, while leaving the idiosyncratic and ESG bias of the long portfolio unhedged. The short portfolio will also always look to include a component of fundamentally selected single stock shorts as a supplement to its primary hedging role. Both portfolios will be global and unconstrained by region or sector, with the fund usually maintaining an overall net long exposure of typically between 20% and 30%.
Under the Sustainable Finance Disclosures Regulation (SFDR) this fund is classified as an Article 8 and will be available in a UCITS format.
Powe said: “This is an exciting time to launch a fund with an ESG mandate to invest in the long-term value creation generated by the world’s strongest companies within the context of a long-short portfolio. In a changing world, we believe the strongest companies will prioritise sustainability, and that customers, talent and shareholders will gravitate to sustainable businesses. This fund will seek to invest in the best of these companies, wherever they are in the world, leveraging Man Group’s broader ESG expertise, and combined with a short portfolio designed to underpin the fund’s ambition to generate returns in all market conditions.”
Teun Johnston, CEO of Man GLG, added: “The launch of this fund underscores our ongoing effort to enhance our responsible investment capabilities and offer our clients a breadth of investment opportunities in this space. Rory and the team have an established investment process and track record of investing in both European and global equities. We are excited to launch a fund that applies the team’s expertise to an ESG mandate within a long-short framework.”
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