Federated Hermes launches US quantitative equity fund in UCITS format
1 SEPT, 2025
By Joanna Piwko from RankiaPro Europe
Federated Hermes has announced the launch of the Federated Hermes MDT US Equity Fund, a UCITS version of its U.S.-domiciled Federated Hermes MDT All Cap Core fund, rated 5 stars by Morningstar. The new vehicle will be available to investors across European and international markets.
Strategy and investment model
The fund replicates the bottom-up quantitative approach of MDT, Federated Hermes’ quantitative active equity division, which relies on machine-learning-driven modeling techniques. Its objective is to deliver long-term capital growth through an all-cap and all-style strategy, benchmarked against the Russell 3000 index.
The portfolio is adjusted daily, following review by the management team led by Daniel Mahr, supported by Frederick Konopka, John Paul Lewicke, and Damien Zhang. The All Cap Core strategy has outperformed both the Russell 3000 and the S&P 500 over multiple time horizons, while maintaining an underweight position in the so-called “Magnificent Seven.”
The MDT US Equity Fund is a fund for any market condition. Our long-term returns demonstrate that what matters is not the direction of the benchmark index, as the strategy has proven resilient in different market environments.
Daniel Mahr, Head of MDT Advisers
International expansion
The launch marks the 16th strategy introduced by Federated Hermes since acquiring Hermes in 2018, as part of its ongoing expansion across Europe and other markets. The fund, domiciled in Dublin, is already registered in 14 European countries and in Singapore, with Switzerland among the next destinations.
Our MDT strategies take a supervised yet disciplined approach, with which our client base strongly identifies. MDT has a long history of deploying a differentiated machine-learning model, which has been able to deliver a repeatable process to the financial benefit of our clients. We are pleased to offer international investors exposure to the U.S. equity markets through these award-winning strategies.
Clive Selman, Head of International Sales, Federated Hermes Limited
The Spanish investor is becoming increasingly sophisticated and demands strategies that can provide real added value to their portfolios. In this regard, the MDT US Equity Fund shows an excellent track record of more than 30 years, demonstrating its ability to adapt to any market circumstance.
Melanie Lange, Head of Business Development for Federated Hermes Iberia
