- Advertisement -
- Advertisement -

Global Assets Dynamic Set in Motion

- Advertisement -

Stockholm (HedgeNordic) – Norwegian boutique investment firm Global Assets has launched Global Assets Dynamic, a quantitatively-managed equity fund that mitigates portfolio downside risk using VIX-based products. Launched as a UCITS fund on September 27, Global Assets Dynamic caters to both retail and professional investors.

“We at Global Assets are pleased to announce that we are going live with our fund,” the team at Global Assets led by co-founder and CIO Lars Semb Maalen-Johansen announces on LinkedIn. “Now it’s just a matter of our team at Global Assets delivering value and returns to our customers in these turbulent times.”

“We at Global Assets are pleased to announce that we are going live with our fund.”

“The Global Assets Dynamic Fund is an equity fund with hedging instruments,” explains the Global Assets team on LinkedIn. The fund combines a quant-driven long-only equity strategy and a continuous but dynamic exposure to VIX futures designed to protect against sharp market drawdowns. “This combination creates an asymmetrical return profile for the fund,” Maalen-Johansen told HedgeNordic around the turn of the year. “The downside risk is going to be a lot lower than the upside potential.” Global Assets Dynamic can allocate up to 20 percent of its portfolio to VIX futures, with the allocation increasing as current implied volatility in the market decreases relative to historical volatility and vice versa.

The long-only leg of Global Assets Dynamic relies on a quantiative strategy that selects a factor style that has the best short-term momentum and builds a portfolio stocks that offers exposure to that factor for the month ahead. “We have a proprietary factor model that screens the market every month to find the factor that is in the wind,” explains the Oslo-based team. “Right now, these are stocks with low volatility.”

Global Assets Dynamic also uses a proprietary model that ajusts the fund’s exposure to the so-called “fear gauge” via VIX futures. VIX futures enable the fund to gain exposure to expected market volatility and book gains as the VIX spikes during market turmoil. The long-only equity strategy is designed to deliver a market-like return over time, with the exposure to VIX futures acting as downside hedge during periods of extreme market volatility. “In addition to this, we have implemented stop-loss strategies and sector diversification so that we can reduce the risk in the portfolio,” further elaborates the team at Global Assets. “Our purpose is that this fund should be a core building element of a diversified fund portfolio.”

 

Picture by Martin Hall Larsen, E24.

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Fishing Where the Fish Are

Stockholm (HedgeNordic) – With a wealth of experience in value creation gained from his tenure at McKinsey and later in private equity at SEB,...

Norwegian Trio Aims to Capture Bitcoin Momentum

Stockholm (HedgeNordic) – Three Norwegian friends, who have known each other since their school days and pursued their master’s studies at the same university,...

Formue Leads Charge for Cash Hurdles

Stockholm (HedgeNordic) – In the decade following the financial crisis, the low-interest-rate environment enabled many hedge funds to launch without setting cash-based hurdle rates...

AP3 Re-Enters Emerging Markets with a Fresh Lens

Stockholm (HedgeNordic) – Sweden’s buffer fund, AP3 Tredje AP-fonden, made the decision to divest all of its equity exposure to emerging markets in 2022...

Beyond the Frontier of Emerging Markets

Stockholm (HedgeNordic) – Frontier markets, often characterized by their smaller size, low-income economies, growing populations and underdeveloped infrastructure compared to emerging or developed markets, are...

New Era for Arden xFund

Stockholm (HedgeNordic) – Just over after successfully running his time-tested systematic trend-following approach with Epoque, Martin Redgård has assumed management of another fund, Arden...

Allocator Interviews

Latest Articles

In-Depth: Emerging Markets

Voices

Request for Proposal

- Advertisement -