Janus Subsidiary
INTECH Launches New Collared Long/Short (120/20) Strategy
DENVER. Janus Capital Group Inc. (NYSE: JNS) subsidiary Enhanced
Investment Technologies LLC (INTECH), today announced the
launch of its Collared Long/Short (120/20) strategy, which
will be available to both U.S. and non-U.S. institutional
investors. The new offering was developed in response to strong
demand for an active, risk-managed, long/short equity capability
to complement INTECH’s broad range of U.S., global and
international equity strategies.
The INTECH Collared Long/Short (120/20) strategy uses a universe
of U.S. securities benchmarked to the Russell 1000 Index.
The strategy’s portfolio weights are determined by extending
the active positions from INTECH’s long-only strategy
building on the same risk managed mathematical investment
process developed by INTECH in 1987. The strategy will target
an annualized average gross return over the long term of between
4.75% and 5.25% above its benchmark index with a beta of 1.0
and an approximate information ratio of 1.0.
“Risk management remains at the heart of INTECH’s
Collared Long/Short (120/20) Strategy because it utilizes
scaled active weights from INTECH’s existing risk-managed
long-only strategy,” said Robert Garvy, Chairman and
Chief Executive Officer of INTECH. “This strategy seeks
higher excess returns and tracking error targets, but at approximately
the same market risk and information ratio levels. We believe
this strategy will be attractive to those institutional investors
looking for alpha with high information ratios.”
INTECH's proprietary investment process relies on a precise
mathematical methodology rather than fundamental analysis
of companies. INTECH begins by attempting to identify stocks
with high volatility relative to the index and low correlation
to each other. Within specific risk constraints, INTECH identifies
target weightings of these stocks in an attempt to take advantage
of the natural volatility of stock price movement. The result
is a portfolio of stocks that seeks to produce an overall
return greater than the benchmark index, but with less downside
risk. This structured process results in virtually no style
drift.
In addition to the Collared Long/Short (120/20) equity strategy,
INTECH's risk-managed active-equity disciplines include: Enhanced
Index, Enhanced Plus, Large Cap Core, Large Cap Value, Large
Cap Growth, Global Core and International Equity.
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