Man GLG absolute return fund targets ‘expensive’ pockets of UK market


Man GLG has announced the launch of the UK Absolute Value strategy, which aims to deliver 10 per cent per annum returns, as it argues pockets of the UK market are looking expensive.

Lead managed by Jack Barrat, the long/short strategy will focus on the mid-cap segment of the UK equity market.

Launching in June, Man GLG says it will use the data and process behind the Undervalued Assets and UK Income funds to deliver 10 per cent returns per annum.

The fund offers a standalone version of the strategy that has been run as part of the Alpha Select fund for over two and a half years.

Barrat says: “Our work on the UK market naturally identifies companies that we believed to be overvalued, further to the undervalued opportunities we look for.”

The strategy identifies stocks with undervalued assets and undervalued profit streams, alongside companies whose asset base or profit streams are materially overvalued, and whose prospects are deteriorating.

“We are excited to launch the strategy on a standalone basis as an extension of this. Our analysis shows that pockets of the UK market are expensive and the wide valuation dispersion in the midcap space is offering a compelling opportunity.”

Man GLG chief executive Teun Johnston says: “The long/short strategy is a natural extension of the team’s existing approach and it has shown it can profit from extreme events such as the shock General Election result in 2015 and the Brexit vote.” 

Man GLG has also announced that it has appointed James Houlden from UBS to its UK equity team.