With an 8-14% per annum return objective over the long term, the Pengana PanAgora Absolute Return Global Equities Fund is clearly managed by a team with investment acumen and a well thought out process.
Broadly seen as an alternatives fund, PanAgora's Chief Executive Eric Sorensen explains that the long-short global equity portfolio controls exposures to the common risk factors that can hurt portfolios, meaning returns are almost entirely driven by company specifics and not macro events or themes.
Sorensen explains that the investment team uses unique and closely guarded proprietary ideas and factors when analysing more than 5000 global stocks. PanAgora's analysis of airlines is one example that shows the depth and creativity of these factors, with the conclusion that airlines with more lost baggage are less operationally efficient and less likely to retain customers in the future. By owning the industry leading airlines and shorting those with the most operational inefficiency, the fund earns a return over time on the differential in performance regardless of macro factors.
In our interview with Sorensen and the accompanying article it is clear PanAgora's focus on further discovering fundamental drivers of company returns through examining unusual data and applying unique analysis and portfolio construction techniques, gives them an edge to avoid crowded trades and outperform the market.
Click here to read the article "Make stock picking really count"
