Alongside Lagrange, Simon Savage, a specialist in active risk management, and Darren Hodges, who deals with options trading, will work on the portfolio. Within the portfolio the managers allocate capital to nine different sector specialists within GLG, who in turn choose the individual long/short positions. Savage and Lagrange handle the asset allocation between these managers and work out the risk profile, including leverage. They also work to balance the sectoral exposures to ensure the fund stays within its plus or minus 5% net exposure to the market.
Lagrange said: “Based on allocation to multiple underlying managers, who cover a wide variety of sectors and regions, the fund captures the culture of expertise and collaboration which makes GLG unique. With someone as experienced as Simon overseeing risk, the overall strategy meets the dual objective of capital growth and capital protection.”
Lagrange notes the launch of the Ucits version is well-timed, with the current mixed outlook for recovery in Europe offering multiple opportunities.
The fund features sterling retail and institutional share classes and features an annual fee of 2% plus a 20% performance fee, which uses a high watermark. The portfolio is a sub-fund of GLG Investments VI plc, incorporated in Ireland.
