The number of differentiated global long/short equity strategies available to Australian retail investors has increased in recent years, according to Zenith Investment Partners.
The firm’s 2016 Long/Short Sector Review found that new long/short strategies had been released into the market in recent years, some of which Zenith Investment Partners senior investment analyst Justin Tay said catered to “previously vacant segments of the risk spectrum”.
“We have observed the launch of a number of new and differentiated investment strategies over the last couple of years, providing investors with greater choice for portfolio construction,” he said.
“Historically, the global long/short space has been relatively limited with regards to the breadth of investment options available, so this is a positive.”
Managed risk strategies were one of the new types of long/short strategies benefiting Australian retail investors, Mr Tay said, noting that Zenith now has two such strategies on its approved product list, where 18 months ago there were none.
“We view managed risk strategies as an appealing option for those investors who are transitioning to retirement for example,” he said.
“This is the time when investors are most exposed to sequencing risk and cannot afford a material loss of invested capital.”