PanAgora Asset Management (PanAgora) is a well-known leader in quantitative investment strategies, managing over AU$52b* across a range of strategies for institutional investors worldwide. PanAgora offer a full range of investment products, including global, US and emerging market equity, diversified risk, asset allocation, balanced, currency and fixed income strategies. PanAgora is based in Boston, Massachusetts.
The relationship between Pengana and PanAgora has enabled the US based manager to bring their innovative research and intellectual capital capabilities to the Australian retail market.
The Fund employs a long/short equity strategy which aims to construct a portfolio that is generally neutral to market movements. As such the performance of the investment strategy is largely independent of the market’s performance.
The Fund seeks to achieve its objective by using a diversified set of strategies that have low correlation to one another. In addition, because many of these strategies are designed to generate profit under different market conditions, their combination is expected to result in more stable returns over time than any individual strategy in and of itself. These strategies have been developed by PanAgora.
In the future, the Fund may invest in additional strategies developed by PanAgora that fit the Fund’s risk/return objectives. Through the potential allocation to the additional strategies, PanAgora would seek to provide the Fund with excess performance by introducing strategies with very low correlation to the Fund’s other sources of return, with little incremental risk to the Fund.
The strategies are designed to capitalise on long-term, intermediate-term and short-term inefficiencies.
PanAgora believes that stock prices are largely driven by the fundamental strengths or weaknesses of a company’s business prospects, and that certain fundamentally based measures are indicative of a company’s likely success or failure. Opportunities also exist because many investors either lack the ability to identify and evaluate these measures with sufficient breadth and speed or are hampered by institutional rigidities. As a result, the prospects of a company’s likely success or failure are often mispriced by market participants. PanAgora believes the best way to exploit these opportunities is to deploy an approach that combines fundamental analysis with robust quantitative techniques in order to filter the investment universe and select the investments.