TORONTO (HedgeWorld.com)–”Selective” fundamental stock picking and measured allocations of long and short positions are the features of three new funds offered by a new Canadian hedge fund manager.
The funds offered by Selective Asset Management Inc. center on fundamentals of North American securities and economic trends that determine whether long or short positions should sway future performance.
The strategies–two single-strategy funds and a fund of funds–each rely on growth at a reasonable price analysis, commonly referred to as GARP. The funds are: Selective Asset Long Biased Equity Hedge Fund LP; Selective Asset Short Biased Equity Hedge Fund LP; and Selective Asset Long/Short Fund of Funds.
The Selective Asset Long Biased Equity Hedge Fund LP invests in companies with positive fundamentals. Positions in the fund are 95% net long in attractive economic conditions and are moved down to 50% in times of caution and move to 50% net short in times of deteriorating economic trends, according to the firm.
The Selective Asset Short Biased Equity Hedge Fund sticks to the strategy in its name and mainly shorts stocks. In economic downturns, the fund maintains a 95% net short position and reduces it to 50% in times of optimism. When longer-term optimism is apparent, the fund retains the flexibility to move to 50% net long.