The Research Equity Long/Short Fund (A shares: JLSAX) seeks to provide individual investors with exposure to equity-like returns while striving to reduce downside risk and limit volatility, according to the company. The fund is managed by senior portfolio manager Terance Chen, who has more than 16 years of investment experience at J.P. Morgan and who is also lead manager of the JP Morgan Research Market Neutral Fund.
In order to provide long term capital appreciation, the company said the fund engages in the following strategies:
- Using the research team’s insights, the portfolio invests in attractively valued securities, offset by short positions in stocks which appear expensive. Long/short pair trades within sectors aims to generate returns while minimizing volatility.
- Maintains a relatively low net market exposure to minimize market risk while emphasizing bottoms-up, fundamental stock selection in generating returns.
- The Fund invests primarily in U.S. securities and does not employ leverage or use of derivatives, beyond cash futures.