JPMorgan Funds - Highbridge US STEEP Fund

Targeting attractive risk-adjusted returns

The fund aims to deliver higher risk-adjusted returns than the market by emphasising stock selection as the primary source of alpha while attempting to minimise exposure to common market factors through diversification. The strategy combines economically sound investment ideas with the latest advancements in technology, seeking to quickly and efficiently identify and profit from small mispricings in the equity markets, while accounting for risk.

Flexibility to pursue the best investment opportunities

The fund seeks to hold only those stocks that offer the best risk-adjusted return potential, regardless of their weight in the benchmark. Its unconstrained investment approach has the flexibility to avoid the size bias of cap-weighted indices and seeks to take advantage of only the best opportunities in the prevailing market environment.

Diversification benefits

The fund’s disciplined, quantitative approach to equity investing relies on a diverse set of investment ideas that assess stock prices and forecast returns over different time horizons, combined with a rigorous and robust approach to risk management. The result is low correlation with conventional equity funds.

Fund highlights

  • Benchmark unconstrained – aims to hold only those stocks that offer the greatest alpha potential, regardless of their index weight.
  • Stock selection strategy –utilises fundamental, economically intuitive investment ideas to assess the attractiveness of each individual stock.
  • Exposure to broad investment universe – selects from the 1,300-1,500 most liquid stocks in the US market.
  • Implemented using state-of-the-art technology – rebalances frequently throughout the day to quickly respond to new information, changes in risk, and shifting market conditions.
  • Diversification within the peer group – uses a differentiated investment process that has had relatively low correlation with other equity funds historically.
  • Access to Highbridge’s alpha generating experience – the portfolio managers have proven expertise applying Highbridge’s proprietary statistical arbitrage model to long-only investing.

VIDEO: Investment strategy. March 2013

Key Facts

  • ISIN: LU0325074259
  • Benchmark: S&P 500 Index (Total Return Net)
  • Fund Manager: Evan Dick / Alain Sunier / Peter Beebee / Jerome Benveniste
  • Share class launch data: 16 May 2008
  • Share class currency: USD