Magellan launches Vinva long-short strategy

Just months after taking a 29.5% stake in the $22 billion hedge fund, Vinva, Magellan Asset Management has announced the launch of a third fund product, the Vinva Australian Alpha Extension Fund.

Magellan said the new product would provide exposure to a 130:30 long-short strategy designed to provide investors with enhanced returns through a systemic and diversified approach.

It said the fund provides exposure to Vinva’s expertise in active, systematic equity investing and aims to generate outperformance regardless of market conditions by capitalising on the potential upside of undervalued stocks and the downside of overvalued stocks.

Commenting on the launch, Magellan managing director, Sophia Rahmani said the launch was reflective of the firm’s deepening relationship with Vinva.

“It’s the first time we’ve brought a long-short product to market, and our distribution team has witnessed a strong positive response from clients when explaining Vinva’s investment process and differentiation,” she said.