EUROPE/ MIDDLE EAST- Pyramis Global Advisors aims to tap directly into the UK, European and sovereign wealth market through the heavy marketing of a suite of long/short equity strategies the firm is rolling out.
In the past month the firm hired two London-based marketing execs that will help the Pyramis gain direct access to investors. Investors outside the US have traditionally used Pyramis, the institutional investment arm of Fidelity Investments, through subadvisory relationships.
Chief investment officer Young Chin believes the firm can gain ground through its suite of 130/30 strategies- investment strategies that can go long up to 100% of its mandate and short up to 30%.
The firm has 16 long/short strategies in various stages of incubation with at least five already seeded with internal cash.
The general appeal of these long/short funds is their ability to generate alpha while keeping a relatively low tracking error.
Chin said: "On the long/short side we're anticipating a lot of interest because of the need…to recover valuations. There's going to be a controlled return to market risk."
Many 130/30 strategies are quantitative and suffered from the credit crisis and ensuing market turmoil. Pyramis offers both quantitative and qualitative strategies and leverages off of the bottom-up research conducted by parent company Fidelity.
Chin said a number of the firm's quantitative strategies pick securities already narrowed by Fidelity's qualitative research. The other quant strategies do not rely on fundamental research, but have been designed to have a lower correlation with conventional quant strategies, said Chin.
"This is terribly important as many investors have been disappointed with - and surprised by - the high correlations among quantitative products typically in the marketplace," he said.
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