Man Group launches systematic Australian equity strategy


Hersh Gandhi

Man Group, the active investment management firm, has announced the launch of a new investment strategy focused on the Australian equities market, Man Numeric’s Australia Core strategy.

The quantitative, bottom-up stock selection strategy operates a systematic and disciplined process, seeking to identify attractive Australian stocks.

Man Numeric’s Australia Core strategy applies a combination of proprietary valuation and information flow stock-selection criteria, with a range of models within these groups seeking to identify areas of potential market inefficiency. Disciplined portfolio construction and risk management will aim to maximise alpha while managing exposure to sector and stock-specific risks.

Ori Ben-Akiva, Man Numeric’s Head of International Strategies, said: “We are excited to launch the Australia Core strategy, which applies our established quantitative investment processes to the Australian equities universe, seeking to maximise alpha for clients through bottom-up, systematic stock selection.”

“We have seen successful application of this investment approach across sectors and markets globally for many years. In Australia, the limited breadth (or depth) of the universe of stocks means we’ll also be setting appropriate capacity limits to ensure the strategy performs as designed (or intended) for investors.”

Man Numeric’s Australia Core strategy will aim to outperform MSCI Australia, with attractive equities being identified from a universe of 200-300 large and mid-cap Australian stocks that satisfy minimum liquidity and capitalisation requirements.

Hersh Gandhi, Man Group’s Managing Director Asia-Pacific, said the firm is focused on delivering attractive investment opportunities for its clients.

“We’ve had a number of discussions with Australian institutional investors about applying Man Numeric’s core approach across Australian equities. The Australian market is quite concentrated, so we see significant opportunities outside the large cap stocks that can be unlocked through a quantitative, bottom up strategy like this.”

“We are pleased to launch this new strategy with seed capital from Russell Investments. Russell Investments will initially include the new Australia Core strategy as part of the manager line up in three of their Australian Equity funds,” said Mr Gandhi.

Man Numeric was founded in 1989 and became part of Man Group in 2014. Since joining Man Group, the business has grown from $14.7 billion in assets under management at 30 June 2014 to $31.9 billion as of 31 December 2017.

Together with Man AHL, Man Numeric forms part of Man Group’s diversified, global quantitative investment platform which offers clients a broad product range across alternative and long-only, trend following and technical strategies.

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