NewSmith launches European long/short equity fund

NewSmith Asset Management has launched a Dublin-domiciled Ucits version of its European long/short equity strategy.

The NewSmith European Ucits Long/Short fund will be managed to the same strategy as the fund’s existing offshore long/short equity fund, which has delivered 29 per cent net returns since its launch compared to the Eurostoxx 50 index return of -29.1 per cent.

The fund, managed by Jean Maigrot, NewSimth’s European equity investment leader, will invest in European equities, taking either long positions, where it will benefit from the stock price going up, or short positions, where it will benefit if stock prices fall.

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Mr Maigrot said: “Many European stocks are trading at a wide discount to US equities.

“At the same time we are concerned about the outlook for European economic growth, so we see opportunities in long and short positions.”