Strategy
What is a long short
equity strategy?
A long short equity strategy aims to provide consistent long-term capital appreciation with an attractive risk-adjusted rate of return in any market condition. It invests in both long and short securities, with the goal of providing less net equity market exposure than traditional long-only strategies through the use of short positions. A long short equity strategy is designed to dampen volatility and mitigate downside risk relative to typical long-biased portfolios, which are heavily exposed to broad market movements.
Why invest in our long short equity strategy?
- Performance enhancement. A long short equity strategy aims to increase gross exposure to generate alpha, while reducing net market exposure to mitigate broad market risk, hence achieving better risk-adjusted returns.
- Risk mitigation. The strategy is designed to dampen equity market volatility and reduce the severe impacts of deep drawdowns, serving as a complement to typical long-biased portfolios, which are generally heavily exposed to equity markets.
How does our long short equity
strategy work?
A long short equity strategy takes a long position in the stock of a company expected to increase in value (stock A), and a short position in a stock expected to decline in value (stock B).
In the strategy the total long exposure exceeds the total short exposure, resulting in positive net market exposure, however, the net exposure is less than a typical long-only equity strategy.
Why invest in our long short credit strategy?
- Desire a strategy that is designed to provide a smoother equity experience.
- Want to access hedging tools intended to dampen volatility and seek to mitigate downside risk associated with equity investing.
- Seek active, momentum-style managers with experience running hedging strategies for over a decade.
What long short investment products does Picton Mahoney offer?
Alternative Investment Solutions are available as mutual funds, liquid alternative funds and hedge funds. Our suite of Fortified Mutual Funds, Fortified Alternative Funds and Authentic Hedge® Funds give investors more choice and ease of access to alternative strategies, adding an alternative source of returns to fortify a portfolio. Our goal, for over 18 years, through different market cycles and investing environments, has been to improve the quality of returns by offering alternative investment solutions.
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This information has been provided as a general source of information, is subject to change without notification and should not be construed as investment advice. This material should not be relied upon for any investment decision and is not a recommendation, solicitation or offering of any security in any jurisdiction. The information contained in this material has been obtained from sources believed reliable, however, the accuracy and/or completeness of the information is not guaranteed by Picton Mahoney Asset Management (PMAM), nor does PMAM assume any responsibility or liability whatsoever. All investments involve risk and may lose value. This information is not intended to provide financial, investment, tax, legal or accounting advice specific to any person, and should not be relied upon in that regard. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.
There is no guarantee that a hedging strategy will be effective or achieve its intended effect. The use of derivatives or short selling carries several risks which may restrict a strategy in realizing its profits, limiting its losses, or, which cause a strategy to realize or magnify losses. There may be additional costs and expenses associated with the use of derivatives and short selling in a hedging strategy.
The offering of units of the Picton Mahoney Authentic Hedge® funds are made pursuant to an Offering Memorandum only to those investors in jurisdictions of Canada who meet certain eligibility or minimum purchase requirements. Prospective investors should consult with their investment advisor to determine suitability of investment. Please see the Fund’s Confidential Offering Memorandum for more information, including investment objectives and strategies, risk factors and investor eligibility.
Commissions, trailing commissions, management fees, performance fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Alternative mutual funds can only be purchased through a registered dealer and are available only in those jurisdictions where they may be lawfully offered for sale.