Sunday, March 28, 2010
GAM launches UCITS III global systematic quant fund with Wadhwani Asset Management
GAM has continued to expand its existing range of UCITS III funds to include a highly liquid, systematic, managed futures fund managed by Dr Sushil Wadhwani, Founder and CEO of Wadhwani Asset Management. This is the first time that investors have been able to access these strategies in an onshore, regulated format.
GAM Star Keynes Quantitative Strategies relies on directional fixed income and equity models to produce returns that exhibit a low correlation to traditional markets. The proprietary investment models, which have been developed with Wadhwani’s 25+ years’ experience of quantitative modelling, seek to harness the economic factors that underpin each market. By combining momentum indicators with macro influences the models can enhance returns relative to other trading strategies. The inclusion of non-price information is key as it significantly helps the models anticipate changes in market direction.
The strategies employ a multi-tiered approach to risk management where risk control is embedded within the systematic models and risk positions are also continuously monitored and analysed by the Risk Committee and Research Team. The offshore versions of these strategies have outperformed global equity markets by more than 8% pa. over the last five years, with significantly lower drawdowns.
Sushil Wadhwani’s investment philosophy and approach are deeply rooted in Keynesian economics. He comments, “Human nature gives too much weight to recent events, and clings to beliefs in the face of contrary evidence. Our current economic and market outlook suggests macro uncertainty, which can create a ‘herding’ effect among investors. It is important to know when to run with the herd and when to break away before it has a chance to stampede. Our quantitative models enable emotion to be removed from the decision-making process and can therefore exploit mispricings resulting from behavioural biases.”
Craig Wallis, Group Head of Institutional & Fund Distribution at GAM, said: “GAM has always employed an open architecture approach to investment management in order to give our clients access to the best money managers in the world. Sushil Wadhwani has long been recognised by GAM as one of the most talented and innovative investors in his field. We are delighted to have been able to work with Sushil to create a product which combines access to his enviable economic and market experience with a highly liquid and regulated format.”