GAM Investments has launched dynamic credit strategy on its GAM Systematic platform, which has $4.3bn of assets under management in quantitative strategies, as at 30 November 2018.
The innovative credit strategy is a fully systematic offering, which seeks to outperform global credit markets on an absolute and risk-adjusted basis over the cycle, but with downside risk mitigation.
The strategy takes long positions in credit markets and will respond to less benign markets by reducing exposure to, or even shorting, credit and taking long positions in safe haven fixed income. It is highly liquid, trading credit indices, US and European government bond futures and the most liquid names within a universe of approximately 400 single name credits.
It combines three diversified approaches: tactical credit, directional credit and market neutral credit, which act analogously to a credit trader, a credit strategist and a credit analyst, respectively. The strategy aims to outperform global credit markets over the cycle.
Managed by the GAM Systematic investment team, it complements the existing suite of systematic strategies, which spans equities, fixed income, multi-asset and alternatives.
Robust risk management underpins GAM Systematic's investment process and all strategies are rigorously and scientifically tested before they are introduced to investors.