Meriti Neutral is a day-traded hedge fund within the Equity Market Neutral category. The fact that the fund is neutral to the stock market means that it generates returns that are not dependent on the performance of the stock market. The fund can thus generate returns even when the stock market shows a weak performance. This means that Meriti Neutral can be an interesting alternative for investors seeking to diversify their portfolio.
The managers follow a systematic and structured investment process combining various modern asset management techniques. Various quantitative models are used for portfolio construction, rebalancing and risk management. The models used in the management are primarily based on established economic principles, not simply built to fit historical data. Data analyzed are market data, fundamental company data and various forms of forecast data. This approach has earned the team several international awards and nominations from a previous employer over the years.
The Fund is well diversified and normally consists of a relatively large number of smaller positions in equities and equity-related instruments. This means that the risk of each individual position is low while limiting the Fund's expected level of risk.
Management objectives
The Fund is a hedge fund in the Equity Market Neutral category. The objective of the management is to generate an annual positive return in various base currencies over time, and for the return to show a low correlation to the performance of the equity and bond markets.
| Yield target | Absolute returns, exceeding 6-8% per year, over the medium term |
| Yield level | Higher risk-adjusted returns than a traditional equity portfolio |
| Risk | 6-8% per year |
| Correlation to the stock market | 0 |