iM Global Partner has launched the iMGP Sirios Absolute Return fund, making its long/short strategy available to international investors for the first time.

Sub-managed by US-based hedge fund manager Sirios Capital Management, the Luxembourg-domiciled SICAV is an absolute return mandate, aiming to generate positive returns throughout all market conditions.

In order to be classed as an absolute return fund, iMGP believes such strategies should aim to achieve returns which are 5-10% in excess of the overnight rate throughout the course of a market cycle. However, no specific performance target has been allocated to this fund.

iMGP Sirios Absolute Return is managed by six analysts, covering a sector each. The portfolio will be equally-weighted across stocks in the consumer, financials/real estate, healthcare, industrials, technology/communications, and technology/telecom sectors. Both long and short positions will be chosen on a bottom-up basis, focusing on earnings growth and cashflow.

The fund also targets a low net exposure of below 30%. It is available through both UCITS and ETF share classes.

Julien Froger, managing director and head of Europe at iMGP, said: “By bringing this strategy to market in a UCITS structure, we’re providing international investors with a new option in the liquid alternatives space at a time when there are fewer players in the market than in the past.

“Sirios is a well-established equity long/short manager with a long-term track record that makes them an excellent manager for a fund designed to solve the challenges that investors are facing today. We look forward to working with clients to help them navigate all market conditions in this new low-net equity long/short strategy.”

John Brennan Jr, managing director at Sirios Capital Management, added the firm is “thrilled to be launching” its new absolute return strategy in a UCITS structure alongside iMGP.

“After many years in the fundamental equity long/short space the timing is right for an absolute return strategy. With equity valuations stretched and the market bifurcated, a low-net fundamental-driven product will benefit from strong stock-picking dynamics,” he said.

This article first appeared in our sister publication, Portfolio Adviser.