We do not believe that the US equity bull market is over yet but we expect lower returns with rising volatility, such as those experienced in 2015. In this environment, investors are naturally looking for equity Long/Short strategies focused on generating absolute returns and offering relative downside protection.
We have been managing equity L/S strategies for more than eight years and have made this expertise available in a UCITS format in July 2014 when we launched LO Funds–Fundamental Equity Long/Short. The Fund delivered first quartile performance1 since inception and with half the volatility of the US equity markets.
1 Source: Morningstar, Alternatives Long/Short Equity US peer group as at 31 December 2015, P share class in USD.