Stockholm (HedgeNordic) – UK-based fund house Jupiter Fund Management is increasing its presence in the liquid alternatives fund space with the recent launch of the Jupiter US Equity Long Short fund. The UCITS-compliant strategy is managed by hedge fund manager Darren Starr (pictured), who joined Jupiter’s liquid alternatives business in April of this year.
The Jupiter US Equity Long Short Fund will manage a concentrated portfolio of 40 to 60 companies based in the United States or conducting most of their activities in the country. The fund aims to maintain a net equity exposure in the range of plus and minus 25 percent of net assets, with short positions allowing the possibility to hedge against falling equity markets, reduce the correlation with the broader stock market and limit volatility in portfolio returns. The gross equity exposure is anticipated to average around 200 percent.
Darren Starr has more than ten years of experience managing U.S.-focused equity long/short portfolios at UBS, SAC Global Investors, and Caxton. Starr joined Jupiter from Hong Kong-based long/short manager Segantii Capital. He is now part of Jupiter’s London team and works closely with the firm’s other long/short and long-only equity portfolio managers.
“The launch of this fund is an important step in our strategic initiative to continue to build out our liquid alternatives capabilities at Jupiter,” Magnus Spence, head of investments at the firm’s alternatives division, comments on the new launch. “Darren is a highly experienced US equity investor with significant expertise in equity long-short investing and risk management. We are pleased to have him on board,” he adds.
Discussing the recent development of the liquid alts space, Spence says: “The universe of liquid alternatives has grown rapidly over the last few years despite generating fairly mediocre returns. Many investors have been disappointed by the low levels of risk taking, the high fees and the elevated correlations with equity markets. The Jupiter US Equity Long Short Fund has been specifically designed to address these concerns. We believe it will be a valuable addition to the universe of liquid alternative funds.”
“This is an exciting time to be launching the US Equity Long Short Fund, and I relish the opportunity given to me by Jupiter,” says portfolio manager Darren Starr. “The US equity market is delicately balanced with strong domestic economic conditions driving corporate earnings growth. On the other hand, ongoing disruption in many sectors, as well as macroeconomic and political challenges, present considerable risks.”