Majedie-backed Javelin Capital to launch long/short global equity fund

New boutique Javelin Capital, which is backed by Majedie Investments, is to launch a long/short global equity fund targeting annualised returns of 15%-20%.

Subject to regulatory approval, the Javelin Global Equity Strategies fund will be a multi-strategy dollar-denominated qualified investor fund (QIF) targeting volatility of 8% to 10%. The fund will be managed by Javelin’s CIO Victor Pina (pictured), formerly of Goldman Sachs, and his two-strong team. They use proprietary models to analyse which strategy is most appropriate for each sector and region after applying a number of screens.

The fund is likely to hold around 550 positions, taking a market neutral approach. It will have around 35% allocated towards the ‘tactical alpha’ strategy, which applies to markets they view as ‘fat tailed’ and susceptible to boom and bust cycles. A high number of trades are executed to add diversification and reduce risk. It uses stop losses and profit-taking mechanisms to close out of losing positions early and let winning positions run on.

This will run alongside the tactical beta strategy, which aims to find beta opportunities in similar markets.

For non-fat tailed markets which show signs of mean reversion in their trading patterns and relationships Javelin will apply its systematic strategy through quantitative modelling tools. There will be a 35% allocation towards this strategy through a sub-long-short portfolio, rebalanced daily with the aim of market neutrality. 

The team will also adopt a fundamental strategy for markets that are prone to boom and bust cycles which also exhibit mean reversion characteristics. For markets which show momentum characteristics, this approach aims to identify long-term growth stories.

The fund is set to launch over the next few months and will be seeded with £20 million.