Eisman Long Short Strategy
A true equity long short portfolio with the potential to generate alpha from both long and short positions.
- Aims to identify investment opportunities both positive and negative created by sector, company or management disruption/change
- Emphasis on achieving absolute, risk-adjusted returns over a market cycle
- Develop market equity portfolio with a current focus on North America equities
- Bottom-up, fundamental strategy with synthetic shorts independent of the long book
- Portfolio net exposure dynamically shifts based on underlying market environment
Key Risks
Market Risk: The risk of a change in the value of a position as a result of underlying market factors, including among other things, the overall performance of companies and the market perception of the global economy.
Liquidity Risk: The risk that the strategy may be unable to sell an investment readily at its fair market value. In extreme market conditions, this can affect the portfolio’s ability to meet redemption requests upon demand.
Derivatives Risk: The strategy is permitted to use certain types of financial derivative instruments (including certain complex instruments). This may increase the portfolio’s leverage significantly, which may cause large variations in the value of your share. Investors should note that the portfolio may achieve its investment objective by investing principally in Financial Derivative Instruments (FDI). Certain investment risks apply in relation to the use of FDI.
Counterparty Risk: The risk that a counterparty will not fulfil its payment obligation for a trade, contract or other transaction on the due date.
Operational Risk: The risk of direct or indirect loss resulting from inadequate or failed processes, people and systems, including those relating to the safekeeping of assets or from external events.
Currency Risk: Investors who subscribe in a currency other than the base currency of the strategy are exposed to currency risk. Fluctuations in exchange rates may affect the return on investment. If the currency of your investment is different from your local currency, then you should be aware that due to exchange rate fluctuations, the value of investments may increase or decrease if converted into your local currency.
Overview
Investment Approach
- Independent long and short portfolio for additional alpha generation
- Emphasis on bottom-up stock selection
- A process that aims to identify investment opportunities both positive and negative created by sector, company or management disruption/change
Disrupters vs. "Disruptees" |
Supply/ Demand Backdrop: Changing Growth Dynamics |
Incentive Systems/Misaligned Compensation Structures |
Regulatory
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Investment Process
Macro Outlook |
Sector Analysis |
Idea Generation |
Portfolio Construction |
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Financial System Overlay:
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Analyze each sector to establish an outlook and create investment themes
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Identify companies key to sector themes
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