The Challenger Solutions Spectrum Systematic Alpha Fund (the Fund) is a cutting-edge multi-strategy systematic investment fund, designed to provide positive absolute returns regardless of market direction.
We leverage both quantitative and qualitative analysis to pinpoint market inefficiencies and build a robust portfolio of systematic strategies to capture alpha from them. The Fund is designed to deliver consistent returns with minimal correlation to overall market direction.
Investment philosophy and approach
Our investment philosophy is centred on the following core beliefs:
- Systematic: Market distortions exist that can be systematically harvested to generate alpha.
- Diversification: Systematic strategies can be a powerful source of diversified return to complement more traditional asset class exposures.
- Portfolio: Constructing a portfolio of uncorrelated systematic strategies across multiple asset classes delivers more consistent risk and return outcomes.
Our approach involves identifying persistent market inefficiencies and developing strategies to systematically extract alpha from these inefficiencies. We employ a multi-strategy approach, spanning many styles of systematic strategies across multiple asset classes. The strategies exhibit low correlation to each other and to broad macroeconomic factors. This is key to creating a portfolio with enhanced risk-adjusted returns which can serve as a diversifying return stream for most investment portfolios.
We dynamically manage our exposure to different systematic strategies to position the overall portfolio for prevailing market conditions, while maintaining sufficient diversification to ensure the portfolio remains uncorrelated.
Suits investors seeking:
Absolute return
The Fund targets positive absolute returns regardless of the market environment.
Diversification
The Fund explicitly targets low correlation to other asset classes and tends to be diversifying to traditional investment products. Even relatively small allocations to the Fund can enhance overall risk adjusted returns at the client portfolio level.
Liquidity
The Fund is highly liquid, in contrast to other sources of uncorrelated returns such as hedge funds, infrastructure and property.
Benchmark: RBA Cash Rate Total Return Index.
How to invest: The Fund is only available to institutional investors. If you're an institutional investor and wish to invest in the Fund, please contact Liam McDermott on +61 (466) 563 890 or lmcdermott@fidante.com.au.
The team
Marco Barchmann
Jerome Yim
Kriti Mishra
Liam McDermott
James Gong
Insights
Giving members the best outcomes
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Correlation and the power of diversification
