Opalesque Industry Update - GLG Partners LP , the Financial Conduct Authority authorised and regulated investment manager and part of Man Group plc, is pleased to announce the launch of the GLG Undervalued Assets Fund.|
Launching on 15 November, the fund will be managed by Henry Dixon, who, along with assistant fund manager Jack Barrat and analyst Alice Sharp, joined GLG recently from Matterley, the fund manager Dixon founded in 2008.
The fund, a mirror of the FP Matterley Undervalued Assets Fund¹ which has been managed by Dixon since launch in 2008 – returning 92.76% against a benchmark return of 53.61%² – will aim to outperform the FTSE All Share index through a market cycle.
Seeded with £40m of capital, the Fund will invest predominantly in UK equities which the manager considers to be undervalued relative to their asset base and to their returns on capital. Domiciled in the UK, the Fund will comprise between 40 and 60 stocks with a minimum position size of 0.5% and a maximum of 5% or twice the index weight. Sector weights are limited to an absolute sector limit of 25%, and are determined by upside, liquidity and volatility.
The portfolio may include European stocks, although these will only be included if they are materially cheaper than their UK peers and will be limited to a maximum of 20% of the portfolio.
The annual management charge is 0.75%.
Richard Phillips, Head of UK Retail at Man, said:
“Henry’s track record in managing the Matterley fund is extremely strong and we are pleased to offer a new portfolio which will implement the same process and approach that Henry and his team have put to such good effect since 2008. GLG has a strong reputation as a company which allows independent thinkers like Henry to flourish and we believe the new fund will be a valuable addition to our existing UK equity proposition.”
Henry Dixon said:
“We are excited by the opportunity to launch this fund with the backing of GLG. We will continue to employ the same strategy that has served us well in the past and look forward to leveraging off GLG’s additional resources with the aim of delivering attractive results to investors.”