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Man GLG launches global sustainable long-short fund with Rory Powe

21 September 2021

Man GLG RI Global Sustainable Growth Alternative will use its short portfolio to hedge market risks and supplement the alpha generation of its long positions.

By Abraham Darwyne,

Senior reporter, Trustnet

Man GLG has launched a global sustainable growth long-short UCITS vehicle, to be run by top-performing manager Rory Powe.

The new fund, named Man GLG RI Global Sustainable Growth Alternative, will aim for an absolute return by taking both long and short positions in global equities.

It will use a high-conviction approach with a long portfolio of 25 to 45 global companies. Its short portfolio will hedge market risks and supplement the alpha generation of its long positions.

Powe will work with co-managers Virginia Nordback and Ikitsa Anastasov, as well as a team of four analysts. Powe and Nordback currently co-manage the Man GLG RI Global Sustainable Growth fund.

The long portfolio will be split into two types of companies: those with leading ESG (environmental social and corporate governance) credentials, and those with the scope to achieve leading ESG credentials within five years.

Between 60% and 100% of the long positions will be made up of companies that already have leading ESG credentials and meet all five of the team’s investment criteria: formidable competitive leadership and purpose-led culture; resilient and growing revenues; robust profitability; attractive cash-flow characteristics; and full reporting on greenhouse gas emissions.

Up to a maximum of 40% of the long portfolio will feature firms that are on track to meet these criteria within five years.

Powe (pictured) and his team will engage with the portfolio companies to improve their sustainability.

He said: “This is an exciting time to launch a fund with an ESG mandate to invest in the long-term value creation generated by the world’s strongest companies within the context of a long-short portfolio.

“In a changing world, we believe the strongest companies will prioritise sustainability, and that customers, talent and shareholders will gravitate to sustainable businesses.

“This fund will seek to invest in the best of these companies, wherever they are in the world, leveraging Man Group’s broader ESG expertise, and combined with a short portfolio designed to underpin the fund’s ambition to generate returns in all market conditions.”

Powe is also the lead manager of the £1.5bn Man GLG Continental European Growth fund, a long-only European equity strategy.

It is on the FE Investments Approved List, with the analysts that put it together saying: “Since Powe took over the fund in 2014, he has significantly outperformed his benchmark and has done so consistently due to his excellent stock selection. Superior stock selection fuelled the significant outperformance in 2020, above and beyond what would be expected from a quality-growth strategy. Powe is a dedicated investment manager who learns from any mistakes.”

Man GLG Continental European Growth has made 209.1 per cent since Powe took charge, compared with 97.1% from the FTSE World Europe ex UK index and 95.6% from the IA Europe ex UK sector.

The new fund will be classified as an Article 8 Fund under the Sustainable Finance Disclosure Regulations.

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