About European Long/Short
Launched in 2001, the Martin Currie European Long/Short strategy aims to capture the very best European long-term growth opportunities with managed volatility and downside protection, utilising a bottom-up investment process with a disciplined macro framework.
Europe is home to many successful global brands, innovating companies and entrepreneurial management teams. We believe Europe will remain home to quality companies demonstrating positive growth stories, which will allow stock pickers to generate returns and alpha in the future. In our view, the economic and political conditions in Europe will remain uncertain for some time and this is where our long/short strategy can be beneficial to investors – where we aim to efficiently capture uncorrelated European equity returns with managed volatility and downside protection.
Launched in 2001 and managed by Michael Browne and Steve Frost since the start, the strategy utilises a bottom-up fundamental investment process based on extensive stock research. Within the process, a disciplined and proprietary macro framework guides the exposure management.
We believe that stock selection is the main driver of alpha generation and consequently our focus is on fundamental analysis. The philosophy of the European equity long/short strategy is based on identifying company valuation anomalies and investing in the differential.
Ultimately, the process focuses on stock fundamentals, but the portfolio managers also believe it is important to consider the macro environment in order to optimally position the portfolio. This analysis is carried out using proprietary systems developed by the portfolio managers. The quantitative side removes emotion from the data, delivering an objective assessment that reacts quickly to changes in market conditions, while the qualitative inputs are an aggregation of their opinions.
The Martin Currie European Long/Short strategy aims to efficiently capture uncorrelated European equity returns with managed volatility and downside protection. The strategy utilises a bottom-up fundamental investment process based on extensive stock research. A disciplined macro framework guides the exposure management.
| Portfolio characteristics | European Long/Short strategy |
|---|---|
| Benchmark | MSCI Europe (LC) for illustrative purposes only |
| Absolute return objectives |
Upside capture Downside protection Managing volatility Alpha generation on the long and short book |
| Market capitalisation | Large- and mid-cap |
| Sector/country allocations | Pan-European – no formal country or sector exposures |
| Number of stocks | 40-70 |
| Gross exposure range | +50% to +200% |
| Net exposure range | -30% to +100% |
| Futures/options | No |
| Portfolio turnover | 3-5x |
| Inception | January 2001 |
The characteristics shown are guidelines only and not hard limits.
The time is now for Long/Short investing
In our view, the economic and political conditions in Europe will remain uncertain for some time and this is where our long/short strategy can be beneficial to investors – where we aim to efficiently capture uncorrelated European equity returns with managed volatility and downside protection.
Michael Browne
Portfolio Manager
Investment team
The Martin Currie European Long/Short strategy is managed by Michael Browne and Steve Frost, two highly experienced portfolio managers who have co-managed this strategy since January 2001 and have worked together since 1989.
Michael and Steve are responsible for stock research, idea generation and analysis, portfolio construction and the management of client portfolios.
Michael Browne
- Job title
- Portfolio Manager
- Experience
- 34 years
Steve Frost
- Job title
- Portfolio Manager
- Experience
- 31 years
The European market offers a large and liquid opportunity set with multiple pricing inefficiencies. We believe an equity long/short strategy provides the best way to exploit these opportunities.
How to invest
We offer investors access to our strategies through a segregated account or a range of pooled vehicles.
Please contact us to discuss the most appropriate investment to meet your requirements.
How to invest
Martin Currie is an independently managed investment affiliate of Legg Mason, one of the world’s largest asset management firms.
Legg Mason is responsible for the sales and client service of our funds for financial advisers and individual investors.
If you would like to find out more about these funds, please visit the Legg Mason website.
How to invest
Martin Currie is an independently managed investment affiliate of Legg Mason, one of the world’s largest asset management firms.
Legg Mason is responsible for the sales and client service of our funds for financial advisers and individual investors.
If you would like to find out more about these funds, please visit the Legg Mason website.
How to invest
Martin Currie is an independently managed investment affiliate of Legg Mason, one of the world’s largest asset management firms.
Legg Mason is responsible for the sales and client service of our funds for financial advisers and individual investors.
If you would like to find out more about these funds, please visit the Legg Mason website.
Related insights
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Today pain, tomorrow gain
A short sharp shock to the economy that is broadly over by Easter. The presumption is that European authorities are able to contain the virus via quarantine restrictions thus reducing the spread and mortality as the weather improves.
- Date published
- 9 Mar 2020
- Tag
- Covid-19