Columbia Threadneedle Investments has launched a long-short absolute return fund in European equities.
The Pan European Absolute Alpha fund will be available through the firm’s Sicav fund range in Luxembourg.
It will be managed by London-based portfolio managers Paul Doyle, manager of the European Crescendo fund and Fred Jeanmaire, who runs the Pan European Focus fund.
The investment strategy will be a high-convinction, bottom-up stock selection with a bias on undervalued companies and will benchmark the three month EURIBOR with a target performance of six to eight per cent per annum.
The fund will invest between 40 to 80 long and short positions and will also use derivatives.
Gary Collins, head of wholesale distribution for EMEA and Latin America at the asset manager says: “Given the extreme market moves in the past months, our clients are looking for ways to reduce the impact of volatility on their portfolios while generating consistent risk adjusted returns.”
Columbia Threadneedle European equities team, made of 26 staff, manages over €40bn AUM across portfolios.
Doyle says: “In an era of low interest rates and political uncertainty, as exemplified by the Brexit vote, we believe that a low volatility, absolute return strategy fits with our clients’ needs.
“We expect uncertainty to persist in Europe, with the upcoming referendum in Italy and elections in France and Germany, providing us with attractive investment opportunities on both the long and short side.”