Longreach Harvest Quant Investors

About

Longreach Harvest Quant Investors (LHQI) is an active equity investment manager, specialising in managing Global Equity based strategies (including sub-regional and country specific sleeves) including market-neutral, long-only and passive enhanced variations. We believe that scientific investing can better produce consistent, repeatable, risk-adjusted performance for investors.

LHQI brings together a deeply experienced, global investment team providing investors the opportunity to invest into a best-in-class global equity investment solution. LHQI specialises in providing global alpha solutions, delivered through combining a unique set of predictive factors and advanced machine learning resulting in highly differentiated quantitative solutions.

Approach

The fundamental pillars that underpin our investment philosophy and ensuing processes are as follow:

  • We adhere strongly to the tenets of active management;
  • We believe history repeats due to the persistence of investor behavioural biases;
  • Separating signal from noise contributes to more successful forecasting of returns;
  • Alpha management is the best form of risk management;
  • Scientific investing and the application of Machine Learning is the basis of our forecasting processes;
  • Domain expertise is key to successful quantitative based investing;
  • Research and Development is advantageous in a competitive and technologically advancing world.

Team

Patrick Cannon

Head of Investments: Portfolio Management, Research & Execution

Patrick Cannon has more than 23 years of global investment experience.

Following his tenure at BGI, Patrick headed the US Systematic Equities Division for Deutsche Asset Management (New York). Following which, in partnership with Jim Creighton he established Creighton AI (CAI), where for 13 years he managed, researched and traded quantitative global equity strategies for a number of large investment management companies worldwide.

Arthur Roumeliotis

Head of Research & Senior Portfolio Manager

Arthur has more than 25 years of investment experience at large well known firms in Australia and Asia.

Arthur departed BGI to lead Macquarie Bank’s industry leading quantitative funds management group as Head of Investments. Following this Arthur moved to JANA Investment Advisors to head the Absolute Return Research Division, Invesco and Prudential Asia.

Jim Creighton

CEO CAI

Jim has more than 35 years of investment experience. He served as the Global Chief Investment Officer at three of the world’s largest global investment management firms: BGI, Deutsche Asset Management and Northern Trust Asset Management.

Jim and his team are focused solely on R&D and have partnered with Longreach Harvest Quantitative Investors to deliver strategies based upon their research to investors.

Listen to Jim’s interview

Our Capabilities

Longreach HQI Global Market Neutral Fund

ARSN: 631 270 276 | APIR: DAM9817AU

Objective

The Fund aims to provide investment returns in excess of the Reserve Bank of Australia (‘RBA’) cash rate over a rolling 3 year period after fees.

Strategy

The strategy seeks to deliver risk adjusted returns, irrespective of market conditions, with target volatility of 6% to 8%p.a. and low correlation to traditional assets. The Fund will utilise a global market neutral strategy through implementing a differentiated, global quantitative process which invests in listed global equities.

Fund Key Features

Inception Date
15 November 2019
Return Target
8-12% per annum
Volatility Target
6-8% per annum
Benchmark
RBA cash rate
Std. risk measure
4 - Medium risk of short term loss
Min Invest.
$20,000
Liquidity
Daily
Distribution (if any)
Paid annually as at 30 June
Buy/sell spread
+0.45% / -0.45%
Investments

The Fund can invest in any country that is a member of the MSCI ACWI Index. Long or short exposure can be achieved by holding these securities directly or via equity swaps. The Fund may use exchange-traded funds and both exchange-traded and over-the-counter equity derivatives including equity swaps and equity index products associated with the countries in which the Fund invests. Currency forward contracts and spot foreign exchange will be used to manage currency exposures.

Fees

Management fee: 1.35% p.a

Expense recovery: Estimated to be 0.15% p.a

Performance fee: 20% of excess performance above the benchmark and after fees, provided specific performance hurdles are met

Longreach HQI – High Alpha Global Market Equity Neutral Fund

Objective

The Fund aims to provide investment returns in excess of the Reserve Bank of Australia (’RBA’) cash rate over a rolling 3 year period after fees.

Strategy

The strategy seeks to deliver risk adjusted returns, irrespective of market conditions, with target volatility of 10% to 12%p.a. and low correlation to traditional assets. The Fund will utilise a global market neutral strategy through implementing a differentiated, global quantitative process which invests in listed global equities. The Fund will seek to operate with no more than 4% net non-Australian dollar currency exposure.

Fund Key Features

Inception Target Date
Q1 2020
Return Target
15-18% per annum
Volatility Target
10-12% per annum
Benchmark
RBA cash rate
Std. risk measure
5 - High risk of short term loss
Min Invest.
$100,000
Liquidity
Daily
Distribution (if any)
Paid annually as at 30 June
Investments

The Fund can invest in any country that is a member of the MSCI ACWI Index. Long or short exposure can be achieved by holding these securities directly or via equity swaps. The Fund may use exchange-traded funds and both exchange-traded and over-the-counter equity derivatives including equity swaps and equity index products associated with the countries in which the Fund invests. Currency forward contracts and spot foreign exchange will be used to manage currency exposures.

Fees

Management fee: 1.75% p.a

Expense recovery: Estimated to be 0.30% p.a

Performance fee: 20% of excess performance above the benchmark and after fees, provided specific performance hurdles are met

For further information about the Fund, please contact client.services@longreachalternatives.com

Longreach Australia Equities Long Only Strategy

LHQI has managed an active Australian Equities Long Only mandate for an Australian Institutional Investor since October 2019. The Strategy invests in Australian Securities and aims to outperform the benchmark, the S&P/ASX 300 Accumulation Index, by to 2% to 4% per annum over a rolling 3 year period after fees.

Key Features

Inception Date
October 2019
Return Target
2-4% per annum
Volatility Target
4-6% per annum
Benchmark
S&P/ASX 300 Accumulation Index

For further information about this capability please contact client.services@longreachalternatives.com