Opalesque Industry Update: GSB Podium Advisors has launched a global equity
statistical arbitrage UCITS fund, the GSB Equity Market Neutral (UCITS) Fund.
The strategy is a market neutral equity long/short fund and uses share price meanreversion and price momentum based trading across a universe of more than 3,000
stocks globally. The portfolio is geographically diversified, with positions in the US,
Europe and Asia-Pacific markets. The UCITS fund offers daily liquidity. The GSB
strategy has historically demonstrated low correlation with the equity markets, with
other quantitative equity strategies and with hedge funds in general.|
Mr. Shengbei Guo, founder of New-York based GSB Podium Advisors, ran Deutsche Bank’s equity statistical arbitrage trading desk from 1997 to 2005. He managed the same strategy for the Deutsche Bank Noetic Equity Long/Short Fund from 2005 to 2008. At its peak the strategy had more than $600m of assets under management. After a short stint as CIO at Galleon Quantitative Management running the Galleon Quantitative Statistical Arbitrage Fund, Guo decided to launch his own alternative investment management firm in 2010, GSB Podium Advisors.
The strategy has returned on average 8.77% per year from January 2005 until February 2012, for a standard deviation of 6.48% per year. It returned +2.47% net in 2011 and is up 5.02% YTD per the end of February. The UCITS fund will trade pari passu with the other GSB vehicles.
Mr. Guo commented: "We are very excited about the launch of the GSB Equity Market Neutral Fund, making our flagship strategy available to UCITS investors. Our fund tries to offer investors consistent returns with low correlations to equity markets and other hedge fund strategies. We believe that both trending and volatile market conditions may offer good trading opportunities for our strategy. "