The fund uses algorithms from Man’s $16.7 billion flagship fund AHL, it will trade interest rate and bond futures, currencies and interest rate swaps globally.
“The world’s bond markets are roughly twice the size of the world’s equity markets yet much less money is managed by fixed income than by equity alternative investment managers.” Sandy Rattray, chief investment officer of Man Systematic Strategies, a division of Man running the fund, said. “In an environment where market participant risk-taking in interest rates has been considerably reduced since 2008, this creates attractive alpha opportunities.”
The fund will seek to latch onto trends in prices; spot distortions in yield curves and benefit by their reverting to normal; and profit from higher interest rates in emerging market currencies if it judges market conditions favorable.
The fund was seeded with $50 million and has been in the works since January 2010. A UCITS version may be in the works, Man said.
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