Equity Strategies
Buying undervalued stocks and selling short overvalued stocks (usually in the same sector).
Long/Short Equity
A strategy that seeks to exploit pricing inefficiencies preceding or following corporate events such as bad news, distressed situations, mergers & acquisitions, recapitulations, or spin-offs.
Event Driven
Takes long and short positions in credit instruments such as investment grade, high yield, convertible or distressed debt in order to take advantage of opportunities in these asset classes. Views based on credit analysis of issuers and securities.
Long/Short Credit
A strategy that seeks to exploit differences in stock prices by being long and short in stocks within the same sector, industry, market capitalization, country etc. This strategy creates a hedge against market factors
Equity Market Neutral
Aims to profit from changes in global economies, typically brought about by shifts in government policy that impact interest rates, in turn affecting currency, stock and bond markets. Participates in all major markets - equities, bonds, currencies and commodities - though not always at the same time.
Macro
A strategy which is biased towards buying and holding securities such as a stock, commodity or currency, with the expectation that the assets will rise in value
Long Bias
A strategy that buys deeply discounted equity, debt or trade claims of companies in or facing bankruptcy or reorganization
Distressed
An approach in which the manager invests primarily in bonds (also annuities or preferred stock) which come with a fixed rate of interest (coupon) payable to the bondholder at maturity. Such funds are often highly leveraged.
Fixed Income
An investment strategy that consists in the discovery and exploitation of inefficiencies in the pricing of bonds, i.e. instruments from either public or private issuers yielding a contractually fixed stream of income.
Fixed Income Arbitrage
Fund focused on investments in raw materials and/or primary agricultural products such as grains, meats, orange juice that can be bought and sold on a Commodities Exchange.
Commodities
Invests in securities perceived to be selling at deep discounts to their intrinsic or potential worth. Such securities may be out of favour or underfollowed by analysts. Long-term holding, patience, and strong discipline are often required until the ultimate value is recognised by the market
Value-Oriented
An investment strategy that invests in event driven situations such as mergers & acquisitions, hostile takeovers, reorganizations, or leverage buyouts.
Special Situations
Trading securities that are secured by a mortgage or a collection of mortgages.
Mortgage-Backed Strategies
Relative value strategies generate profits by capturing the spread between two closely related securities. For example, an investor can buy relatively undervalued off-the-run U.S. Treasury Bills and simultaneously short relatively overvalued on-therun U.S. Treasury Bills with the same duration
Relative Value Arbitrage
Funds that trade currencies on the foreign exchange market.
Foreign Exchange
A fund strategy used by investors that open positions, either long or short, in the belief that they are able to correctly predict the movement of price in a security.
Directional
A form of arbitrage which involves the simultaneous purchase of shares in one company and the short sale of assets in another. This strategy is typically used in expectation of a pending announcement of a company take-over.
Risk / Merger Arbitrage
A type of financing in which the asset being bought is used as collateral.
Asset-Backed Lending Strategies
Mathematical modelling techniques are used to identify pricing inefficiencies between securities in order to make a profit
Statistical Arbitrage
Fund which is able to take on elements of long and short bias
Variable Bias
Investment theme changes from strategy to strategy as opportunities arise to profit from events such as IPOs, sudden price changes often caused by interim earnings disappointment, hostile bids, and other event driven opportunities.
Opportunistic
A fund that invests purely on credit investment and employs a number of credit strategies
Specialist Credit
Funds that attempt to exploit the pricing inefficiency that exists in the capital structure of the same firm.
Capital Structure Arbitrage