Jupiter banks on beating “mediocre” return in liquid alts

US_congressJupiter Asset Management has launched a US equity long/short fund that the firms says will address concerns that liquid alternative products are failing to take enough risk and produce satisfactory returns.

The Jupiter US Equity Long Short fund is managed by Darren Starr, a hedge fund manager who joined Jupiter’s liquid alternatives business in April.

The fund will look to generate an absolute return over a three-year rolling period and will comprise a portfolio of around 40-60 stocks of companies either based in, or with most activities in, the US.

The net equity exposure of the fund will normally range between plus and minus 25% of net assets while the gross equity exposure is expected to average around 200%.

Magnus Spence, Jupiter’s head of investments, alternatives, said: “The universe of liquid alternatives has grown rapidly over the last few years despite generating fairly mediocre returns.

“Many investors have been disappointed by the low levels of risk taking, the high fees and the elevated correlations with equity markets. The Jupiter US Equity Long Short Fund has been specifically designed to address these concerns.”

Starr has over ten years’ experience managing US equity long-short portfolios across roles at UBS, SAC Global Investors and Caxton.

He said ongoing disruption in many sectors of the US market, as well as macroeconomic and political challenges, presented “considerable risks”, meaning it was an “exciting time” to be launching the fund.

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