US-based Zebra Capital Management has launched a new fund that aims to extract value from the premium paid on liquid stocks.
Under the new strategy, called the Zebra Liquidity Return Strategies, the company aims to build portfolios of listed companies with strong fundamentals, but which are cheaper compared to their peers due to a lower liquidity of the stock.
"It's a way to extract value from this liquidity premium in investment markets," Clearway Capital managing director Joseph Fekete told InvestorDaily.
Clearway Capital is a business development and product adviser, which helps Zebra grow its business in Australia.
The new strategy is currently only available for Australian investors as separately managed accounts, Fekete said, but plans are being discussed to launch Australian domicile funds as well.
"It would be a function of demand, but we are keen to do that. Those conversations have taken place," Fekete said.
The funds would be wholesale funds suitable for investment by institutional and professional investors.
Zebra Capital was founded in 2001 by Yale School of Management finance professors Roger Ibbotson and Zhiwu Chen.
Morningstar owns Ibbotson Associates, a consulting firm also founded by Ibbotson.
