Cumberland Private Wealth Management, an investment firm that provides discretionary investment management services for high-net-worth individuals, has launched a market neutral fund offering investors a way to diversify their wealth portfolios with a strategy uncorrelated with the ups and downs of the markets.
Focusing on the technology sector, the fund is designed to earn a positive absolute return while limiting market and liquidity risks by exploiting pricing inefficiencies across public markets, primarily NYSE-listed and Nasdaq-listed equity securities.
The fund is intended for high-net-worth individuals, financial advisers, family offices, and smaller institutional investors.
"A market neutral fund can be a difficult concept to grasp for some investors traditionally used to making money when markets go up, and losing when they go down," says John Wilson, chief investment officer, Cumberland. "However investors today are looking for alternatives in a volatile market that has limited yield — market neutral funds can play a vital role in optimising overall portfolio risk, while enhancing long term portfolio returns."
The fund uses offsetting long and short positions to reduce overall market risk as well as specific sector and industry risks. The strategy also protects against liquidity risks through being primarily weighted in larger corporations with over USD500m market capitalisation.
