Man GLG launches Absolute Value fund

Man GLG has launched Jack Barrat’s Absolute Value fund.

The fund will take long and short positions in UK mid-cap equities with market capitalisations between £350m and £5bn.

The fund will seek 10 per cent annual returns with 40 to 60 positions.

Barrat says: “We have employed an absolute value-based framework in the Man GLG Undervalued Assets Fund for a number of years in order to identify companies that we believe are undervalued by the market.

“Leveraging the same framework to monetise the opportunities it also identifies as overvalued was the next step for the process and we are pleased this strategy has performed well since inception in 2014.” 

Teun Johnston, CEO of Man GLG, says Barrat has helped build Man GLG’s UK equity proposition alongside Henry Dixon, who co-manages the £723m Man GLG Undervalued Assets Fund with him.

Johnston says the fund will generate alpha by concentrating on an area of the UK market which is under-researched.