The objective of Acadian’s Multi Asset Class Strategy is to deliver positive absolute returns, with a low correlations to equities and other asset classes, while maintaining a prudent level of risk. The strategy is implemented via long/short positions across and within five major asset classes: Equities, Bonds, FX, Commodities, and Volatility. Specifically, we aim to deliver:
- Return target: Cash + 5%
- Volatility target: 8%
- Low correlations to equity and bond markets
A typical portfolio seeks to incorporate diverse sources of returns in a risk-balanced fashion. We distinguish three fundamental sources of return in terms of the types of positions we can hold:
- Long-Term Allocation: returns from holding broad asset class betas.
- Dynamic Allocation: returns from dynamically adjusting these betas.
- Market Selection: returns from going long/short markets within an asset class, zero net asset class exposure.
For more information on MACS: email@example.com