Schroders GAIA Asian Equity Long Short Fund

The Schroder Asian Equity Long Short Strategy is an actively managed, market-neutral Asian equity fund seeking to deliver positive absolute returns across different market environments through two distinct and non-correlated strategies: alpha transfer and pair trades. The alpha transfer book typically comprises 50 high-conviction Asian stocks (typical holding period of 2–3 years), with the paired short book being a market index (MSCI AC Pacific Free ex Japan Index). Starting from a universe of approximately 2,800 stocks (Asia Pacific ex Japan), the team employs proprietary screens to filter the universe based on a range of valuation, momentum, and quality factors. Stocks falling within quintiles 1 and 2 move to the next stages of the process: Schroder Shareholder Return Classifications (where analysts classify stocks based on projections for return on capital) and analyst grading. Position sizes are then determined by conviction level, potential for outperformance, and contribution to overall portfolio risk. The pair trading sleeve is shorter-term (typical holding period of 3–6 months) and targets stock pairs that satisfy at least two of the following signals: statistical arbitrage, quantitative divergence, and fundamental divergence. This sub-portfolio typically comprises 25–35 high-conviction pairs, with approximately 40–60% gross exposure. Allocation between both sleeves is dynamic and based on conviction levels and return expectations. The portfolio is managed by a highly experienced investment team co-led by King Fuei Lee and Robin Parbrook and leverages Schroder's strong regional presence.