The European Flexible Equity Portfolio seeks to generate returns with a concentrated active equity portfolio and dynamically adjusts equity market exposure, using derivatives, in order to seek to preserve capital in adverse market conditions.
The portfolio will invest primarily in European equities but has the option of investing up to 20% of its portfolio in other equity markets.
The fund will be run Michele Patri, Chad Gex and William Johnston who will each take responsibility for an individual sector – namely, defensives, cyclicals and financials respectively.
Patri said as volatility, market risks and return opportunities change over time, agile investors may be able to achieve better results by adapting their investment strategy to meet changing market conditions becoming more aggressive when conditions appear favorable and reducing exposure when the outlook is bearish.
"We believe, in the long run, investors can outperform low-risk assets by investing in equities, and that active management can improve upon equity-market returns," said Patri.
