Genus Launches Canadian 130/30 Equity Strategy

Date: Friday, April 4, 2008
Author: Craig Sebastiano, Benefits Canada

Genus Capital Management has launched its Canadian 130/30 equity strategy, which is designed to extract greater returns from the firm’s existing quantitative equity management processes. “We launched our 130/30 in response to institutional demand and because it’s a natural extension of our proven alpha-generating process,” says the firm’s CEO and chief investment officer, Wayne Wachell. Genus Canadian 130/30 adheres to the conventional framework for these products. It combines a long-only equity portfolio with an overlay of a short position in unattractive stocks, offset with an overweight of equal size in attractive stocks. The best ranking stocks make up the firm’s buy candidates while the bottom ranking stocks are sell or short candidates. Advanced risk management tools and processes are used to maintain style, sector and market neutrality for the 130/30 strategy. To comment on this story, email craig.sebastiano@rci.rogers.com.