Mandelbrot and Universal Investment launch market neutral equity fund
Mandelbrot Asset Management and Universal Investment have announced the joint launch of Mandelbrot Market Neutral Germany, a German equity fund pursuing an absolute return strategy.
The fund aims to deliver an annual return of 8% with a maximum drawdown of 13%.
“While the underlying mathematical procedure for this fund is highly complex, the structure of the fund is very simple explains Wilhelm Berghorn, managing director of Mandelbrot Asset Management.
The fund includes cash positions in 15 German stocks including Dax, MDax and TecDax firms whilst generating an exual volume of short position in Dax futures with the aim of minimising market risks.
Positions in the fund are adjusted monthly, based on the Fraktale and Wavelets procedure developed by mathematician Benoit Mandelbrot.