J.P. Morgan Funds on Thursday launched the J.P. Morgan Research Equity Long/Short fund, a mutual fund version of an existing institutional strategy targeting equitylike returns with less downside risk.
The fund is the latest in a line of offerings by the firm that George Gatch, CEO of J.P. Morgan Investment Management Americas, has said extends techniques used for institutional investors, such as shorting, to retail investors as well.
The new fund will target equitylike returns, investing in “attractively valued securities, offset by short positions in stocks which appear expensive,” including long/short pair trades within sectors to minimize volatility, according to a news release.
Spokeswoman Charlotte Powell said the fund will target absolute returns, net of fees, of between 6% and 8%, with a beta target of 0.2 to 0.3 that of the broader market.
Terance Chen, a senior portfolio manager running a similar institutional equity long/short strategy for J.P. Morgan Investment Management Americas, will oversee the new fund.