Independent asset manager Strongbox Capital is partnering with Universal Investment to launch a behavioural finance total return fund.
The quant specialist said the new fund would be a rule-based investment strategy, which aims to generate attractive long-term returns while minimising risk through global equity investments.
Commenting on the launch, Dr. Christian Kurz, managing partner of Strongbox Capital, said: ‘Our rule-based solution has already achieved very positive results for our investors in asset management mandates.
‘We are very pleased to make our strategy available as a mutual fund today. From now on, we can offer our solution to an even wider range of professional investors.’
The fund strategy’s investment process is based on an academic behavioural finance research of the founders, which is completely rule-based and takes into account historical price data within the decision making process.
Kurz added that the fund considers human tendencies, such as over- and under reactions to new information and future market developments, as well as the leaning towards herding and risk-averse behaviour of financial market participants.
Investments are made on a monthly basis in up to 50 equities from a global universe. Unlike long-only equity strategies and passively managed index funds, Kurz said this way of managing the investment quota reduces the portfolio risks.