Reuters- Liontrust Asset Management told Reuters on Tuesday it was planning to launch a range of hedge funds or similar portfolios for its managers, including high-profile fund manager Jeremy Lang.
Liontrust, which said on Tuesday its assets under management rose 8 percent to 5.5 billion pounds in the year to end-March, said it may launch the hedge funds next year.
“It may well be that some time next year Jeremy will run a long-short fund or a 130/30 fund,” Chief operating officer Vinay Abrol said.
Shorting is in essence a bet that the price for a security will fall, while a “130/30” strategy lets traditional long-only managers sell short up to 30 percent of the value of their portfolio, then use that cash to buy more stocks they think will do well.
“It’s a long-term strategic thing. There’s no doubt there’s a lot of money flowing into hedge funds. There’s no doubt, if there’s demand, we’d like to see hedge funds rolled out of other processes. It’s an important area to develop,” Abrol said.
“If markets went a bit wobbly, we’d sell more long-short funds.”
