Equity long/short strategies provide investors with the potential for absolute returns, independent of market conditions. The strategies combine long and short positions, aiming to deliver returns in both rising and falling markets.
The long/short structure means that net and gross exposure (exposure to the market) can be quickly adjusted dependent on bottom-up prospects or overall market conditions. This should limit correlation to wider equity market movements.
During the global financial crisis, company share prices tended to move in unison i.e. they were highly correlated. We are now seeing a return to prices being governed by a company’s earnings prospects, which suits analysis-based stock picking, such as that at the centre of Henderson’s approach.
Investment processes void of complexity
Absolute return strategies do not need to be overly complicated. Strategies, such as Henderson’s, can invest in highly liquid instruments without the need for complex option or derivative trading techniques.
Absolute returns strategies are able to enhance the overall risk-return characteristics of a balanced portfolio, with returns potentially lowly correlated to equity markets and with lower volatility.
UK Equity Long/Short: Ben Wallace and Luke Newman, managers of the UK Absolute Return strategy, have a tried and tested process that was first launched in 2004. Ben has managed the strategy since inception, and Luke since 2009.
European Equity Long/Short: John Bennett has a tried and tested European long/short process, developed since June 1998 when he launched the GAM European Equity Hedge strategy.
Both teams form part of Henderson’s 21-strong Pan European Equity Team. Since Henderson launched its first European equities strategy in 1974, the firm has developed a broad range of tailored products to meet investors’ needs.
Strength in assets
Alternative strategies represent a core capability at Henderson, with more than US$17.5bn* invested in UK and European equity long/short strategies on behalf of clients.
Henderson’s 21-strong Pan European Equity Team includes some of the most experienced portfolio managers in the region. The team has access to a deep pool of specialist market-leading research, much of which is produced in-house, and managers are free to apply the investment processes best suited to their style of investing.
As a pure investment manager, Henderson understands the importance of helping clients to achieve their long-term investment objectives. The aim is to offer a broad range of traditional and alternative products, backed up with a strong set of values and an emphasis on putting the client first.
Established in the 1930s, Henderson has grown to become one of Europe’s largest independent investment managers. The product range continues to be developed with the aim of providing the best long-term investment choice for investors.
* Source: Henderson Global Investors, as at 31 December 2016
Henderson UK Equity Long/Short Team
The UK Equity Long/Short and European Equity Long/Short teams sit within Henderson’s well-resourced Pan European Equity Team consisting of 21 specialists, with an average of 20 years’ industry experience**. The team brings together a broad range of backgrounds and skillsets, sharing research, discussing potential investment ideas, and participating in company meetings. This uniquely collaborative approach allows the team to maximise the effort spent on research that can add the most value.
18 years investment experience
15 years investment experience
European Equitites team
Team of 15
20 years investment experience
UK Equitites team
Team of 6
Henderson European Equity Long/Short Team
The European equity long/short strategy is managed by John Bennett, Director of European Equities. Henderson’s well-resourced Pan European Equity team consists of 19 specialists, with an average of 20 years’ industry experience**. The team brings together a broad range of backgrounds and skillsets, sharing research, discussing potential investment ideas, and participating in company meetings. This uniquely collaborative approach allows the team to maximise the effort spent on research that can add the most value.
Nick Kissak, Asin Rahman, Bill Casey, Robert Schramm-Fuchs & Rory Stokes
Dealing, Operations and Marketing Support
Richard Brown & Eleanor Cameron
The Henderson Pan European Equity Team comprises both European and UK equity teams; the UK team is not included in the European Equity team chart above.
** Source: Henderson Global Investors, as at 30 June 2015