Merian Global Equity Absolute Return GBP

A long / short market neutral strategy which aims to achieve a positive return irrespective of whether markets are rising or falling.

The Merian Global Equity Absolute Return fund follows a long / short market neutral strategy. It aims to achieve positive returns over rolling 12 month periods, irrespective of whether markets are rising or falling and with a low correlation to both equity and bond markets. The fund implements a quantitative investment process, focusing on five main characteristics: dynamic valuation, market dynamics, sustainable growth, analyst sentiment and company management.

The analysis completed feeds into a single return forecast for each stock, and the portfolio construction relies on this input. In addition, the fund managers ensure stringent risk management, which includes strict limits on sector and stock positions.

We like the fund for its robust investment process, and its ability to protect value in falling markets. In addition, it has exhibited low volatility and correlations, which can be attributed to its significantly diversified portfolio.

Fund type Offshore FCA
Asset class Absolute Return
Sector Long / Short
Managed by Amadeo Alentorn, Ian Heslop & Mike Servent
Held in EQ PortfoliosAbsolute Return

Manager Profile

an is head of the Old Mutual Global Equities team, having joined the team in 2004 from the Old Mutual Global Equities team where he was a fund manager specialising in the global technology and biotechnology sectors. Ian joined Old Mutual in 2000, having previously worked as a quantitative fund manager at Barclays Global Investors.

Amadeo Alentorn is a part of the Quantitative Strategies desk, where they run a variety of mandates, ranging from global equity market neutral hedge funds to regional long only equity funds. His current role mainly consists of managing the research team, and conducting research into new ideas and models. He joined OMAM in 2005, while finishing his PhD in Computational Finance at CCFEA, in the University of Essex.

Mike Servent joined the Global Equity team at Old Mutual Global Investors in November 2004. He is a fund manager, and as Head of Systems is responsible for maintaining the investment platform and systems employed by the team. Prior to joining Old Mutual Global Investors, he was a senior consultant at Barra International, specialising in the implementation of multi-asset class risk systems. Prior to this he spent five years with COR Risk Solutions, developing financial modelling software. Mike has over 14 years of experience in the industry.

Fund performance

Merian Global Investors

Old Mutual Global Investors was renamed to Merian Global Investors ("MGI") in 2018, itself having been formed in 2012 following the merger of Skandia Group with Old Mutual Asset Managers. MGI was originally established in the UK in 1984, under the name Providence Capitol, before the acquisition by Old Mutual in 1986. Old Mutual Group, the Parent Company, was established in 1845, and has now grown to over £138.5 billion of assets under management (as of December 2017).