- EQ Investors - https://eqinvestors.co.uk -

BMO Global Equity Market Neutral V10

The fund runs on a quantitative model which constructs a portfolio of long and short positions of around 600-800 based on 5 established investment factors, such as Value, Size, Momentum, Low volatility and Growth at A Reasonable Price (GARP). The portfolio is constructed from sufficiently liquid stocks within the MSCI World Index to maximise exposure to the desired factors, whilst maintaining close to nil market risk or downside correlation to equity markets.

The portfolio utilises leverage and due to the concentrated nature of the portfolio one may expect drawdowns, however the fund delivered excellent risk-adjusted returns in the back testing of the strategy, and since inception.

The fund also exhibits very low downside correlation with other asset classes and absolute return strategies, and is one of the cheapest absolute return strategies available.