Picard Angst has launched a Swiss equity fund for its recent hire, Marco Tinnirello, Citywire Switzerland can reveal.
Tinnirello, who used to be head of asset management at Pfäffikon-based boutique AgaNola until August, is now senior portfolio manager at Picard Angst.
The Citywire + rated portfolio manager will be developing systematic strategies for Picard Angst.
The newly launched fund is officially called the Systematic Equity Premia Switzerland and evaluates the universe of stocks based on valuation, quality, momentum and growth factors. Later in the investment process, individual factors are grouped into a multifactor rating.
The fund implements a market-neutral long/short equity approach, where equities with high expected factor premia will be bought (long position), while equities with low or negative expected factor premia will be sold (short position).
‘The short sale proceeds are kept in cash and serve as collateral for the short position. Market neutrality will be attempted through symmetry of total long and short positions,’ Tinnirello said.
The fund manager said allocation across distinct factors helps to diversify sources of outperformance and smooth factor performance during different market cycles.
‘Based on an efficient and systematic analysis of information from different areas such as valuation (fundamental data), momentum (price data) and behavioural finance (analyst estimates) distinct factors can be identified and factor returns can be quantified,’ he added.
Tinnirello will also continue managing Systematic Equity Switzerland, which was launched in 2013 during his time with AgaNola. Picard Angst took over the investment management of the fund in August.
Systematic Equity Switzerland returned 20.57% in Swiss franc terms over three years to the end of September. Its Citywire-assigned benchmark, Swiss Performance Index TR, returned 20.14% over the same period.
Picard Angst has been offering quantitative and systematic investment strategies since 2004 and has recently extended its systematic equity strategies, which are based on factor returns.