GLG Core Economy

GLG Core Economy is an actively managed low net exposure, long-short equity strategy focused on the Industrials and Materials sectors.
 
  • Managed by Greg Royce who has over 10 years of experience investing in these sectors
  • The core economy offers a large and diversified investment universe of highly liquid stocks that are currently poised to benefit from emerging megatrends
  • Focus is on US stocks, though the strategy may invest in certain other developed markets
  • Concentrated portfolio of mid and large-cap stocks1
  • Value with a catalyst investment approach
  • Rigorous bottom-up process with risk mitigation embedded

Approach

The strategy adopts a catalyst driven approach to unlock value on both an absolute basis and relative to competitors or peers and trading history. Catalysts can include events such as earnings reports, investor days, change of management, restructuring plans or any other events that the investment team believes will have an impact.

Idea generation is the result of rigorous bottom-up analysis complemented with top-down analysis designed to build an awareness of the current macro environment. Once an idea is selected and a catalyst path identified the team conducts fundamental and financial modelling of each individual company to test the validity of the investment thesis and ensure that risk mitigation is embedded throughout the process. This research process results in a concentrated but diversified portfolio1.

As part of the investment process, the investment team regularly monitors the catalyst path risk/reward profile, and price targets. The result is a tightly constructed portfolio with factor risk constrained and the majority of overall risk concentrated in idiosyncratic, stock specific risk.

Approach Alternative
Asset Class Equity
Geographic Focus xxxxxxx

1. These risk guidelines and/or limits are provided for information purposes only and represent current internal risk guidelines. There is no requirement that the Strategy observes these limits, or that any action be taken if a guideline limit is reached or exceeded. Internal guidelines may be amended at any time without notice.

Manager(s)

Greg Royce
Greg Royce
Portfolio Manager, Man GLG

Investment Solutions

Man offers a comprehensive suite of investment solutions and formats that can be tailored and optimised to meet specific client needs. Our investment solutions offer optionality including: liquidity, control, investment restrictions, investor customisations and transparency.

UCITS
Alternative investment funds
US 40 ACT
Regional funds
Separate accounts
Advisory mandates
Managed accounts

Access to investment products and mandate solutions are subject applicable laws and regulations including selling restrictions and licensing requirements. Investment solutions listed above may not be compatible for all investment strategies and may be subject to minimum subscription requirements. Regional Funds: In additions to UCITS and AIFs registered across the EEA, a number of investment strategies are available in vehicles registered in Chile, Netherlands, Hong Kong, Japan, Singapore, South Korea and Switzerland.

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Important Information

1. Internal guidelines may be amended at any time without notice.

Considerations

One should carefully consider the risks associated with investing, whether the strategy suits your investment requirements and whether you have sufficient resources to bear any losses which may result from an investment:

Investment Objective Risk - There is no guarantee that the Strategy will achieve its investment objective.

Market Risk - The Strategy is subject to normal market fluctuations and the risks associated with investing in international securities markets and therefore the value of your investment and the income from it may rise as well as fall and you may not get back the amount originally invested.

Counterparty Risk - The Strategy will be exposed to credit risk on counterparties with which it trades in relation to on-exchange traded instruments such as futures and options and where applicable, ‘over-the- counter’("OTC","non-exchange") transactions. OTC instruments may also be less liquid and are not afforded the same protections that may apply to participants trading instruments on an organised exchange.

Currency Risk - The value of investments designated in another currency may rise and fall due to exchange rate fluctuations. Adverse movements in currency exchange rates may result in a decrease in return and a loss of capital. It may not be possible or practicable to successfully hedge against the currency risk exposure in all circumstances.

Liquidity Risk - The Strategy may make investments or hold trading positions in markets that are volatile and which may become illiquid. Timely and cost efficient sale of trading positions can be impaired by decreased trading volume and/or increased price volatility..

Financial Derivatives - The Strategy will invest financial derivative instruments ("FDI") (instruments whose prices are dependent on one or more underlying asset) to achieve its investment objective. The use of FDI involves additional risks such as high sensitivity to price movements of the asset on which it is based. The extensive use of FDI may significantly multiply the gains or losses.

Leverage - The Strategy's use of FDI may result in increased leverage which may lead to significant losses.

Single Region/Country Risk - The Strategy is a specialist country-specific Strategy or focuses on a particular geographic region, the investment carries greater risk than a more internationally diversified portfolio.

Single (limited) Industries - The Strategy focusses on single (or a limited number of) industries therefore, may be susceptible to greater risks and market fluctuations than investment in a broader range of investments covering different economic sectors.