Fulcrum Thematic Equity Market Neutral Fund (TEMN)

Seeking to deliver absolute returns from long-term thematics in a market and beta neutral manner with both limited and controlled market factor exposures.

investment objectives

6- 0 %
net 5-year rolling returns
6- 0 %
targeted volatility
0
TARGETED EQUITY BETA

investing

Introduction

The Fund seeks to capture medium to long-term (2-5 year) themes in a discretionary, fundamental and market neutral manner with the majority of returns being driven by idiosyncratic bespoke proprietary baskets of stocks with minimal company-specific risks. The strategy seeks to generate alpha on both the long and the short sides of the portfolio.

The investment philosophy focuses on the impact of long-term trends (economic, technological, demographic, social, regulatory, political and consumption) and the understanding of their second and third-order effects on markets and the economy. The portfolio is highly diversified across 20-30 themes with no beta to global equities and with stock-specific risk being mitigated through diversification. The deployment of capital across sectors and geographies is opportunistic. 

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Key Literature

Factsheet

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Fund Brochure

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Contact

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INVESTING

Investment Universe

Equities

  • Global Equities

investing

Key Differentiators

  • Fundamental, discretionary investing in global equities
  • Captures medium to long-term (2-5 year) themes in a beta neutral manner
  • Harness proprietary risk management and analytical resources to limit drawdowns
  • Taking advantage of a ‘high hit rate’ and asymmetry
  • Highly liquid; 95% can be liquidated in 3 days at 15% of average daily volume
  • Strict discipline around net (+/ 20%) and gross (<300%) market exposure, beta neutrality

Investment Philosophy

The Thematic Equity Market Neutral Fund is driven by forward-looking investment research and analysis focusing on long-term drivers. We attempt to overcome the inherent volatility of long-term investing with robust risk monitoring and factor analysis, opportunistically allocating capital across sectors and geographies. We focus on the impact of long-term trends (economic, technological, demographic, social, regulatory and consumption) and try to understand the second and third-order effects of structural trends. The Product is managed in a rigorously market and beta neutral manner while limiting and controlling factor risk and minimising single stock exposure.

Responsible Investment

We strongly believe that the integration of responsible investment considerations will further enhance outcomes for clients over our long-term investment horizon and are endeavouring to integrate this in our investment process. 

In addition, ESG and Climate Change considerations are accelerating mega-trends that the Fund is invested in through the themes we have selected. The team is constantly re-evaluating their forward-looking impact on different sectors and companies and aims to identify both the winners and the losers from these structural trends. We express Climate Change-related themes opportunistically across various sectors and geographies.

Bulb

Collaborating

Leveraging Fulcrum's Capabilites

The team draws on the investment capabilities of Fulcrum’s deep resource of investment professionals, from both the discretionary as well as the macro side of the business. “Nowcasting” based on real time data is an example of the synergy with the macro business, while proprietary risk management models leverage the overall analytical infrastructure of the firm.

Temple

Macro &
Multi-Asset

Three Gears

Risk Premia

Shield

Alternative
Solutions

Connection to web

Thematic
Equities

Worldwide

Responsible
Investing

The Team

The Thematic Equity Market Neutral team benefits largely from the communal architecture of the larger Fulcrum research team, leaning from time to time on macro researchers and the nowcasting team, while having a direct input from the CIO and the Chief Risk Officer.

Fawaz Chaudhry
Fawaz Chaudhry
Head of Equities
Fawaz Chaudhry
Fawaz Chaudhry
Head of Equities

Fawaz Chaudhry joined Fulcrum in 2017 and, as Head of Equities, is responsible for building the firm’s equity capability. A key member of the broader investment team, Fawaz is also the lead portfolio manager for the Fulcrum Thematic Equity Market Neutral Fund and Fulcrum Climate Change Fund. Prior to joining Fulcrum, Fawaz spent over fifteen years developing his long-term, thematic investment approach, including at Hadron Capital and Moore Capital.

Natalia Chmielewska
Natalia Chmielewska
Director

Contact Us

If you have any questions, do contact us and we would be happy to have a chat.