Allspring (Lux) Worldwide - Global Long/Short Equity

Investment Objective

The fund seeks long-term capital appreciation whilst preserving capital in down markets. The fund employs a strategy of gaining long and short exposure in equity securities of issuers in developed markets (countries in the MSCI World Index). The portfolio managers undertake a quantitative investment process to evaluate multiple fundamental, statistical and technical characteristics covering valuation, growth, return history risk liquidity and economic sensitivity

Latest Meeting Note

Meeting 01 Jun 2022

The Allspring Global Long/Short Equity fund employs a systematic investment strategy that seeks to exploit inefficiencies in global developed markets by going long stocks with exposure to fundamental factors that generate alpha and short... Read more

The Allspring Global Long/Short Equity fund employs a systematic investment strategy that seeks to exploit inefficiencies in global developed markets by going long stocks with exposure to fundamental factors that generate alpha and short stocks with poor fundamental characteristics. By shorting ‘high risk’ stocks the fund aims to harvest the low-risk anomaly. Starting from a global universe (MSCI World), the team uses advanced quantitative techniques to forecast securities expected returns with alpha signals generated from the combination of multiple fundamental, statistical and technical characteristics, covering valuation, growth, quality, financial risk, momentum, liquidity, etc. The relative weighting amongst these variables in the security selection process is key, with the strategy blending factor momentum and factor mean reversion elements (the latter is seen as the long-term anchor point for expected returns). When it comes to positions sizing, risks are dynamically assessed using multiple angles and lenses, with the strategy combining backward-looking statistical and fundamental risk models (PCA and Barra) with proprietary forward-looking measures of risk (implied volatility, news, ESG, active risk). The final portfolio is run with moderate leverage, 100% long vs. 30% short, targeting returns of 8-12% p.a. and a 0.5 beta. The portfolio is rebalanced on a monthly basis.

Performance

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
2023 0.6 0.3 0.3 0.5 0.7 0.9 0.2 0.8 0.3 0.7 0.8 0.5 0.1
2022 0.9 0.8 0.7 0.9 0.2 0.4 0.3 0.3 0.6 0.4 0.5 0.4 0.6

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Current Site Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.