Artemis is launching a new market-neutral, long/short equity fund called Artemis Atlas, the firm has announced this morning.
Set to be managed by Ambrose Faulks, the strategy aims to achieve positive returns over three years across a range of macroeconomic conditions.
It will have a bias towards UK companies and the ability to invest up to 49% in other developed markets. There will be an equal balance between long and short positions to achieve low-to-zero net market exposure.
“This fund aims to have very low correlation to equity markets – what people are investing in is our ability to spot mispricing and manage risk effectively,” Faulks said.
Before 2022, quantitative easing had made it difficult for long/short strategies to perform, but things have finally started to change.
“We are in a world where there is a more meaningful cost of capital, so the market is being forced into proper discernment between good and bad capital allocation policies”, Faulks explained.
The new fund will have an ongoing charges figure (OCF) of 0.87% per annum and a performance fee of 20% for returns over the Bank of England base rate.
Faulks also co-manages the Artemis UK Select fund, which is up 15.9% so far this year, the fourth-best result in the IA UK All Companies sector. Before joining Artemis, he spent a decade as an analyst for UK hedge funds.