iM Global Partner launches a US equity long/short strategy with low net exposure in UCITS ETF and fund format

iM Global Partner has announced today the launch of the iMGP Sirios Absolute Return Fund, which for the first time makes available to international investors the long/short equity strategy with low net exposure from Sirios Capital Management.

The fund follows a absolute return approach, with the aim of generating positive returns regardless of the general market behavior. Generally and without specific reference to this vehicle, iM Global Partner places the objective of these types of strategies in annualized returns of the overnight +5% to 10% type over a market cycle, without guarantee that these returns will be achieved.

The fund is sub-managed by Sirios Capital Management, an independent specialist in long/short equity founded in 1999, and seeks long-term capital appreciation by taking long and short positions in companies on a global scale.

Strategy, team and investment process

Management falls on a team of six sector-specialized analysts, with an average experience of 21 years in the industry. The investment process is fundamental and based on intrinsic value, supported by a bottom-up analysis: the team prioritizes earnings growth and cash flows in long positions and detects deterioration of fundamentals for short positions.

• Sector diversification: six blocks with the same weight (consumer, financial/real estate, health, industrials, technology/communications and technology/telecommunications).
• Low net exposure: target of net exposure below 30%.
• Conviction-based management: decisions are made based on the level of conviction and current valuations.

UCITS structure and market context

In the last five years, US equities have made strong advances, with returns close to 15% annually, leaving high valuations and more concentrated markets, especially in the US. On the other hand, fixed income does not always offer less risk, often showing positive correlation with equities.

Against this backdrop, the iMGP Sirios Absolute Return Fund seeks to offer potential for equity appreciation with controlled market exposure, in a UCITS vehicle with daily liquidity.

• Long/short US equity strategy with low net exposure.
• Simple and transparent fee structure.
• Experienced and accessible team of analysts; consolidated track record of over 25 years.
• Daily liquidity in UCITS format domiciled in Luxembourg.
• Available through UCITS fund shares and ETF classes.

We are delighted to launch this fund alongside our partner Sirios Capital Management. An absolute return fund naturally fits into our range, as it allows us to leverage the expertise of our partner network and offer our clients a valuable diversification option in an environment marked by high valuations, sector disruptions, geopolitical risks and possible volatility in the equity markets. Over the past year, we have continued to strengthen the dynamism of our asset management network, especially in the field of alternative investments, and this fund further strengthens our investment capabilities.

Luc Dumontier, CIO of Global Asset Management at iM Global Partner

By bringing this strategy to the market in UCITS format, we offer international investors a new alternative within the universe of liquid strategies, at a time when there are fewer players than in the past. Sirios is a consolidated manager in long/short equity strategies, with a solid long-term track record, making it an ideal partner for a fund designed to meet the current challenges of investors. We look forward to accompanying our clients to help them navigate any market environment with this new long/short strategy with low net exposure.

Julien Froger, Managing Director and responsible for Europe

We are very pleased to launch our new Sirios Absolute Return strategy in UCITS format together with our partner iM Global Partner. After many years of experience in fundamental long/short equity strategies, we believe the time is right for an absolute return strategy. In a context of high valuations and more fragmented markets, a fundamental approach with low net exposure can benefit from a solid stock selection environment. We are also excited that the fund is managed by our long-standing analysis team. This collaborative approach allows us to offer the flexibility of a diversified and multi-sectional fund, while maintaining the depth of analysis typical of sector-specific management.

John F. Brennan, Jr., Managing Director of Sirios Capital Management and co-manager of the fund