The asset manager Bantleon has launched the global mutual fund Bantleon Global Equities Protect, which combines active stock selection with an economic cycle-based allocation management. In addition, various hedging strategies are used to provide downside protection in times of crisis and to create an overall superior risk-return profile.
The fund invests worldwide primarily in equities of large and medium-sized companies (large- and mid-caps). The stock selection is based on a quantitative process that focuses on systematically decomposing each stock in its individual risk and return factors and managing these factors in line with the forecasted economic development. The downside protection is based on the combination of options with anticyclical futures-based management of the overall exposure. This specifically avoids the weaknesses of conventional hedging strategies, such as cash-lock situations. The underlying quantitative models have been used in various investment strategies for more than ten years and are based on fundamental, macroeconomic and technical indicators.
Superior risk-return profile
»The next years will be characterised by lower equity market returns than in the past and increased volatility with pronounced tail risks. In order to achieve an attractive return in this environment, it is important to limit losses during periods of market stress,« explains Sebastian Finke, Head of Portfolio Management Equities. »By combining active stock selection and economic cycle-based management together with the cost-efficient use of various hedging strategies, Bantleon Global Equities Protect is an equity fund that is explicitly made for such a capital market environment.«
