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Neuberger Berman launch event-driven fund to ride out market volatility

Neuberger Berman, Event Driven FundNeuberger Berman believes their new Event Driven Fund will help investors succeed in the midst of corporate upheaval.

The employee-owned investment manager says their UCITS offering will be run by a highly-experienced senior portfolio investment team.

New York-based Neuberger Berman says the fund is designed to perform well in all cycles and particularly in times of market volatility.

The 83-year-old firm, which has offices in 26 countries and a 2,600-plus strong workforce, intends to use a multi-strategy approach which has "robust risk management to minimise market beta and factor exposure".

It says this can generate absolute returns by taking advantage of the mispricing that occurs as a result of corporate change, such as the transition from company ownership from private to public ownership in IPOs, along with mergers and acquisitions.

The fund will be led by senior portfolio manager Joe Rotter alongside six other seasoned investors and will be supported by the company’s deep equity research department. 

Rotter said: “The last six months have seen investors flock to safety as geopolitics, inflation and rising rates continue to heighten volatility across markets. 

“Through this event-driven UCITS fund, we can offer a unique approach to capturing absolute returns from ongoing swings in sentiment. 

“As a client-focused firm, it is important we build on the depth and breadth of our team and provide solutions to the challenges our investors are experiencing at the time they most need it.”

The underlying approach means that in high corporate activity scenarios, the investment managers will dynamically allocate capital to the sub-strategies displaying the highest risk-adjusted returns.

But the firm has made it clear any investments are subject to risks, including counterparty, currency, derivatives, interest rate, liquidity, market and operational risk.

Their head of global intermediary (ex US) Jose Cosio explained: “Investors are facing a turbulent period and are increasingly looking for true diversification within portfolios. 

“We are pleased to offer a strategy with market-neutral positioning and risk-adjusted returns managed by a deep bench of experts with varied backgrounds from hedge funds to investment banking.”