Barclays and Novus Launch New Family of Equity Indices Based on Public Filings of Hedge Funds
September 13 2017 - 11:37AM
Business Wire
Single stock indices aim to provide access to the highest
conviction positions of some of the most sophisticated equity
investors
Barclays today announced the launch of the Novus Barclays Public
Ownership HF Conviction Index Family. This index family, designed
jointly by Novus and Barclays, is a new addition to the Barclays
range of Quantitative Investment Strategies.
The new indices aim to provide an alternative to market
capitalisation weighted indices with a distinctive way to identify
the key investment ideas of hedge funds. The indices also leverage
some of the academic work done in this area of investing coupled
with insights generated during the research and development phase.
In addition to the long-only indices, there will be market-hedged
index versions, which hold a long position in the Novus Barclays
Public Ownership HF Conviction Index and a beta-adjusted short
position in the relevant benchmark index, with the aim of providing
a ‘market neutral’ investment. This responds to investor interest
in accessing this type of investment strategy whilst having very
limited beta to the equity market.
There are 2 sets of indices launched today: one focusing
exclusively on US domiciled US listed companies, and the other
which includes all stocks that are listed in the US including, for
instance, non-US based companies with liquid American Depositary
Receipts. The indices aim to invest in a portfolio of liquid stocks
in which there are the most hedge funds holders with high
conviction positions. The data used to calculate the stocks which
are most commonly high conviction positions will be provided by
Novus.
“Barclays is delighted to expand our range of indices and
increase the breadth of strategies available to investors via the
index format,” said Benedict Redmond, Director of EFS Solutions at
Barclays. “We believe that these indices will be compelling for a
wide range of investors seeking alternative sources of returns, and
we are very pleased to be able to leverage Novus’ expertise in this
space to launch these indices.”
“In a world where information spreads ever faster and is
available to everyone, we now have the chance to track the wisdom
of crowds by applying big data techniques and intelligent
algorithms to large datasets,” said Andrea Gentilini, President of
Novus. “As a large aggregator of hedge fund public data and with
our expertise analysing equity long short managers, Novus is
pleased to collaborate with Barclays on the development of these
new and innovative indices.”
Novus and Barclays began their collaboration in 2015, and over
the last eighteen months have investigated ways to use the publicly
available hedge fund holdings data, also known as 13F filings, to
produce enhanced risk-adjusted returns versus comparable
benchmarks. There is a significant demand for Smart Beta indices
and these new indices aim to deliver hedge fund beta packaged in a
more transparent and systematic manner.
Novus has over a decade of advanced experience analysing
publically-available hedge fund filings, and Barclays partnered
with Novus in order to tap into the company’s insight and expertise
in this field. Novus’ sophisticated analytics and their extensive
hedge fund categorization database, with its granular ability to
focus on particular investment styles of hedge funds, perform the
difficult task of analysing 13F filings and drive the indices.
About Novus
Novus was founded in 2007 by a group of investors, data
scientists and engineers to build a foundation that helps the
world’s top investors generate higher returns. Simply stated, Novus
believes investors need to innovate, adapt and increase the value
they deliver. Today, around 200 of the world’s top investment
managers and institutional investors managing approximately $3.5
trillion use Novus as the foundation to all their data, analytics
and research needs. At its essence, Novus is a platform for the
industry’s top investors to collectively innovate.
Novus Disclaimer
It is not possible to invest directly in an index. Exposure to
an asset class represented by an index is available through
investable instruments based on that index. Novus does not sponsor,
endorse, sell, promote or manage any investment fund or other
investment vehicle that is offered by third parties and that seeks
to provide an investment return based on the performance of any
index. Novus makes no assurance that investment products based on
the index will accurately track index performance or provide
positive investment returns. Novus is not an investment adviser,
and makes no representation regarding the advisability of investing
in any such investment fund or other investment vehicle. A decision
to invest in any such investment fund or other investment vehicle
should not be made in reliance on any of the statements set forth
in this press release.
About Barclays
Barclays is a transatlantic consumer, corporate and investment
bank offering products and services across personal, corporate and
investment banking, credit cards and wealth management, with a
strong presence in our two home markets of the UK and the US.
With over 325 years of history and expertise in banking,
Barclays operates in over 40 countries and employs approximately
85,000 people. Barclays moves, lends, invests and protects money
for customers and clients worldwide.
For more information please visit indices.barclays
Please see important disclaimers at
www.barclays.com/salesandtradingdisclaimer
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BarclaysAndrew Smith,
212-412-7521andrew.x.smith@barclays.com
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