Bankers Trust's Global Investment Management unit has launched the BT Enhanced Stock Index fund, a quantitatively oriented commingled fund that seeks to outperform the S&P 500 index by 1 percentage point per year by taking advantage of market inefficiencies.
Portfolio managers will apply quantitative screens to a basket of S&P 500 stocks. The aim is to benefit from such inefficiencies as corporate earnings surprises, merger activity, recent stock offerings and tax-motivated selling.
The fund will be marketed to institutions familiar with indexing, according to Vernon Barback, managing director responsible for product development.
