Global investment firm Lazard Asset Management (LAM) has announced the launch of the Lazard Global Equity Advantage Fund in Australia, expanding its qualitative offering for local investors.
Built to perform through varying market conditions, the fund employs a bottom-up stock selection process aimed at reducing unintended macroeconomic exposures.
According to the firm, LAM’s active, quantitatively driven framework evaluates companies based on growth potential, valuation, market sentiment, and financial quality, typically maintaining a portfolio of 200 to 350 securities.
This latest launch adds to LAM’s range of quantitative global equity offerings available to Australian investors, which also includes the Lazard Global Small Cap Equity Advantage Fund.
Commenting on the announcement, LAM chief executive for Asia-Pacific, Paul Cuddy, commended the firm’s 20-member Equity Advantage team set to manage the fund.
“Our Equity Advantage team has a proven track record of delivering consistent outperformance and a distinctive return profile when compared to many other quantitative strategies,” Cuddy said.
Working with the firm since 2007 and currently overseeing US$31 billion across various quantitative strategies for clients worldwide, the team combines proprietary insights with perspectives from LAM’s global network of fundamental investors.
“By balancing exposures to key investment styles and controlling benchmark-related risks, the strategy is designed to perform in a wide range of market conditions,” Cuddy added.
Initially launched for institutional investors in 2008, the Lazard Global Equity Advantage Strategy is now accessible to a wider range of investors through an Australian Unit Trust structure – a vehicle commonly used to hold assets or manage investments on behalf of multiple beneficiaries.
In October, Money Management’s sister brand, InvestorDaily, reported on the renewed surge in demand and popularity for quant funds, driven in part by the highly concentrated market, where “Magnificent Seven”-style companies command a significant share of market performance.
With the advent of artificial intelligence (AI) and increased computing capabilities, AXA Investment Managers discussed how it is using quant analysis of textual data to streamline processes like onboarding patent data.
Building on this, Northern Trust Asset Management (NTAM) spoke to InvestorDaily last month about how it is leveraging AI and quant strategies to analyse alternative text-based data – such as competitor mentions in annual reports – to effectively “map” company networks and identify risks and opportunities earlier.
Similar to AXA and NTAM, LAM’s website has highlighted how combining quantitative methods with human-led fundamental research can deliver the best results in generating alpha for investors.
