BEVERLY HILLS, Calif. (HedgeWorld.com)–Recently formed Wahab Capital Management is gearing up for its hedge fund debut in early October.
The U.S.-based long/short WCM Strategic Fund will be run by Norman Wahab, a portfolio manager who has been trading his own proprietary accounts since 2000. Prior to that, Mr. Wahab had worked for Morgan Stanley and Prudential Securities.
The new fund will have a portfolio of about 20 equity positions, including both longs and shorts. Security selection is based on a combination of qualitative and quantitative analysis, taking into account technical factors. Rebalancing, an event that will likely occur monthly, is also important to the portfolio.
“Not enough fund managers pay attention to rebalancing their portfolios, which can produce a situation where core positions get bigger and bigger over time,” Mr. Wahab said. “The fund won’t be market neutral in the strictest sense, but without regular rebalancing it is difficult to stay hedged,” he said.