PREDIA LONG EQUITY FUND (PLE)
PREDIA LONG EQUITY (PLE) is the first fund created on the basis of a management strategy established by ALTIA Investment.
It is a long-only mutual fund (FCP) long only, compliant with the UCITS V format, which is invested in large-cap European and American stocks. The management method relies on signals for Sell and Buy generated by an algorithm which was expressly designed and developed for this purpose.
Rigorous backtests have been carried out and on the basis of these results obtained, ALTIA Investment has decided to create this first investment vehicle (PLE) open to the public.
PREDIA LONG EQUITY is a French “diversified” fund certified by the Financial Markets Authority (AMF) by décision of 15 December 2017.
Principle and management practice
The management practice of this fund is active, total Return type. The idea is to manage a portfolio mainly composed of shares, in relation to benchmarks indices (SX5E, STOXX600 for Europe, Dow J, Nasdaq et S&P for the US). the diversification of the securities and sectors which together form the investment universe is an essential aspect of the management process.
Strict guidelines about the maximum percentage of investment per security have also been defined. (UCITS V standards)
the first objective is to achieve positive performance, but also to beat the indices to which we refer without any tracking error constraint.
The management approach of PLE also daily takes into account the notion of market risk and is thus cautious. First, by respecting the constraints of concentration and liquidity *, then, with the implementation of a stop loss (or stop profit) systematically accompanying each of the positions.
*We apply a filter of liquidity based on the average daily trading volume related to the choice of the securities that compose our investment universe.
Back tests start on January 1st, 2009 and stop on the 31st of December 2016. Since October 2016, real investments replaced the fictitious capital.
We chose to start our backtests in 2009 because the investors’ approach radically changed after 2008. The equity markets had heavily decreased this year due to the famous subprime crisis which has precipitated the bankruptcy of the prestigious investment bank Lehman Brothers.
Since then, investors have reviewed their investment criteria. They adopted a much more careful trading profile and developed a real aversion for risked assets. They don’t hesitate anymore to heavily sanction a security or the market in case of bad news or incertitude.
Our backtests simulate logically the management of a long-only fund depending on these criteria.