Acadian first began managing long/short portfolios in 2002. As of June 2017, we manage over $3 billion in long/short assets across both market neutral and 130/30 implementations. Acadian launched the Global Leveraged Market Neutral strategy in 2010, focusing on leveraged investing in long and short equity positions across the developed and emerging markets.
Acadian's market neutral strategies are focused on absolute risk and return, seeking maximum exposure to the stock selection return factors that we believe are likely to deliver the desired excess return. The strategy provides diversification in a broader portfolio of global investments with the goal of offering uncorrelated risk and returns. Market neutral strategies target a net beta neutral exposure in an effort to avoid the effects of unrewarded systematic risks in these portfolios.
Acadian's Global Leveraged Market Neutral strategy, much like our other long/short implementations, holds long and short positions across all capitalization ranges in developed and emerging markets. The Global Leveraged Market Neutral strategy is also generally beta-neutral, in an effort to avoid exposure to unrewarded systematic risks. The strategy offers the same broad diversification, and focus on the stock selection return factors we believe are likely to deliver the desired excess return. The main differentiating factor is the use of leverage within the strategy in an effort to amplify returns from stock selection.
Acadian's 130/30 strategies reflect the belief that our ability to add value as an investment manager is derived from our ability to apply our stock selection process across the broadest possible universe of global stocks. This strategy seeks to increase returns by taking short positions of 30% of the portfolio value in the least attractive securities as identified by Acadian's stock forecast model, and uses the proceeds of the short sales to increase long positions in the most attractive securities. We offer a variety of implementations of the 130/30 strategy, across capitalization size ranges, regional variations, and differing degrees of short exposure (e.g. 110/10).