New long/short strategy launched to the market
13 June 2008

A new long/short product as has been launched for investors seeking equity market-like returns at substantially lower risk.

The AXA Rosenberg Global Advantage Long/Short strategy, which invests in large and mid cap equities across the US, Europe and Japan, also boasts low correlation to equity markets.

The strategy draws on AXA Rosenberg’s bottom-up stock selection process, which ranks over 21,000 stocks based on their future earnings prospects relative to their peers.

The selection process for the Global Advantage Long/Short strategy provides a potential competitive advantage for long/short investing because it identifies a large number of short candidates, as well as long candidates, for portfolio construction on an ongoing basis.

AXA Rosenberg’s investment philosophy is grounded in the belief that earnings are an indicator of returns—stocks that deliver superior future earnings will be rewarded with future returns over time.

Simon Vanstone, Europe chief executive officer at the firm, commented: “In managing a long/short portfolio, the goal is to buy stocks with superior expected future earnings and sell short equities with inferior expected future earnings. Using our unique combination of fundamental bottom-up stock selection and quantitative processes, we are able to analyze a huge universe of large and mid-cap stocks, identifying the likely winners and losers, while providing a level of portfolio diversification that few managers can match.”