Numeric Liquid PE Alternative

Man Numeric's Liquid Private Equity Alternative strategy aims to provide investors with an investment which performs in a similar manner to a private equity investment, but using publicly-traded stocks. We seek to identify public equities that most closely resemble the positive characteristics of the companies found in buyout fund portfolios, and avoid both the industries and types of companies which buyout funds typically deem to be unattractive.

Overall, the strategy seeks to generate a similar return profile, sector profile and risk exposures as the US private equity ('PE') buyout industry.

Approach

 

Liquid illiquid option for PE investors

  • Lower cost, systematic PE alternative;
  • Cash management tool for PE investors with cash that is not yet committed capital; and
  • More appropriate PE benchmark than traditional public equity indices.

Investment Process

  • Select public stock universe: Starts with a stock selection universe that is reflective of the small-medium size of companies generally found in buyout portfolios;
  • Tilt to industries favoured by PE: Matches the industry exposures of private equity using live buyout deal data;
  • Avoid “obvious” stocks: Applies a series of screens to eliminate stocks that the model feels do not display PE-like characteristics; and
  • Builds portfolio bottom-up: Aims to construct a portfolio that is optimized using various risk controls and estimated transaction costs.

Performance

Strategy

YEAR TO DATE

-7.83%

1 YEAR*

-1.43%

SINCE INCEPTION*

2.36%

Performance by calendar years

Strategy

2019

29.51%

2018

n/a

Investment Solutions

Man offers a comprehensive suite of investment solutions and formats that can be tailored and optimised to meet specific client needs.

Our investment solutions offer optionality including; liquidity, control, investment restrictions, investor customisation and transparency.

UCITS
Alternative investment funds
US 40 ACT
Regional funds
Separate accounts
Advisory mandates
Managed accounts

Visit man.com where you can find products available in your jurisdiction.

Access to investment products and mandate solutions are subject to applicable laws and regulations including selling restrictions and licensing requirements. Investment solutions listed above may not be compatible for all investment strategies and may be subject to minimum subscription requirements. Regional Funds: In addition to UCITS and AIFs registered across the EEA, a number of investment strategies are available in vehicles registered in Chile, Netherlands, Hong Kong, Japan, Singapore, South Korea and Switzerland.

Considerations

One should carefully consider the risks associated with investing, whether the strategy suits your investment requirements and whether you have sufficient resources to bear any losses which may result from an investment:

  • Market Risk - The Strategy is subject to normal market fluctuations and the risks associated with investing in international securities markets and therefore the value of your investment and the income from it may rise as well as fall and you may not get back the amount originally invested.

  • Counterparty Risk - The Strategy will be exposed to credit risk on counterparties with which it trades in relation to on-exchange traded instruments such as futures and options and where applicable, ‘over-the- counter’("OTC","non-exchange") transactions. OTC instruments may also be less liquid and are not afforded the same protections that may apply to participants trading instruments on an organised exchange.

  • Currency Risk - The value of investments designated in another currency may rise and fall due to exchange rate fluctuations. Adverse movements in currency exchange rates may result in a decrease in return and a loss of capital. It may not be possible or practicable to successfully hedge against the currency risk exposure in all circumstances.

  • Liquidity Risk - The Strategy may make investments or hold trading positions in markets that are volatile and which may become illiquid. Timely and cost efficient sale of trading positions can be impaired by decreased trading volume and/or increased price volatility.

  • Financial Derivatives - The Strategy will invest financial derivative instruments ("FDI") (instruments whose prices are dependent on one or more underlying asset) to achieve its investment objective. The use of FDI involves additional risks such as high sensitivity to price movements of the asset on which it is based. The extensive use of FDI may significantly multiply the gains or losses.

  • Single Region/Country Risk - The Strategy is a specialist country-specific Strategy or focuses on a particular geographic region, the investment carries greater risk than a more internationally diversified portfolio.

  • Model and Data Risk - The Investment Manager relies on quantitative trading models and data supplied by third parties. If models or data prove to be incorrect or incomplete, the Strategy may be exposed to potential losses. Models can be affected by unforeseen market disruptions and/or government or regulatory intervention, leading to potential losses.

  • Smaller Companies - The Strategy invests predominantly in small-cap company shares which can be more volatile and less liquid than those of larger companies

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