Sabre’s award winning Equity Market Neutral Fund uses a dynamic allocation process to construct a global portfolio targeting return of 10-15% with volatility of 6%-7%.

Leading in the quantitative field, the Sabre Style Arbitrage Fund successfully combines three uncorrelated alpha engines, which capture the longer term returns generated by economic cycling as well as the short term returns attributed to investor behavioural activity. By combining traditional multi-factor models with statistical arbitrage and style rotation in a dynamic framework, Sabre has broken new ground. Since the Funds’ inception in 2002, this integrated triple alpha engine has generated consistent returns.

The strategy is to pursue whatever themes the market is concentrating on at any given time. It is able to do this by screening a vast array of fundamental data and forming predictive style models. These models have a dynamic regime change overlay that controls the timing and allocation to each theme.

This enables Sabre to capture both the long-term style opportunity inherent in factors as well as style persistence (or trends) in factors caused by first, longer-term economic cycling and then, short-term behavioural activity.

This approach is therefore volatility agnostic as no matter what styles investors follow, the models will be able to adapt to changing market dynamics.

The Fund:

• Has no significant correlation with equity markets and very little correlation with other hedge fund strategies
• Controls downside risk to a pre-determined target
• Is able to adapt nimbly to changing conditions due to superior “regime change” models

For institutional investors the Fund offers an absolute return alternative to direct equity investing. The strategy can also be employed with no leverage or UCITS compliant exposure.