Blackrock Style Advantage

The BlackRock Style Advantage Fund is designed to provide attractive, diversified risk-adjusted returns with low correlation to the major equity and bond markets. The fund invests in a diverse set of long/short portfolios, each of which represents exposure to a specific “style factor” that has been proven to outperform over long time periods of time.

These style factors include value – the tendency for fundamentally  cheap assets to outperform relatively expensive ones; momentum – the tendency for an asset’s recent relative performance to continue in the near future (i.e. gains tend to follow gains and losses tend to follow losses); carry – the tendency of higher-yielding assets to provide higher returns than lower-yielding assets; and quality – the tendency for assets with more predictable future cash flows to outperform those with more volatile cash flows.

Style factors result from structural, behavioural, or risk premia differences within and across asset classes. These factors are represented across equities, fixed income and currencies.