BlackRock has launched a new long/short equity fund focused on fast-growing, disruptive companies in the UK market, Wealth Manager sister title Citywire Selector can reveal.
The BSF UK Emerging Companies Absolute Return fund will invest across all cap sizes and focus on firms in the early stage of existence or those projected for a huge upswing in growth.
Lead manager Dan Whitestone said the fund will focus on firms with ‘genuine earnings power’ and tap opportunities primarily in consumer services, technology and innovative financial companies.
‘Disruption is what we are after and that can come in many forms and from many different areas. Technology is going to form a strong part of that drive and, in some respects, the market is naïve about how much that will change what we do in the future.’
The fund will operate with around 150 positions, which will be comprised of 60 long holdings and 90 shorts. The shorts will largely be drawn from the companies set to be disrupted by change in the UK market.
Whitestone added that the companies are primarily UK based, which accounts for 70% of exposure, but those with international businesses. This is while 30% can be directly invested into companies based or operating outside of the UK.
The fund expands BlackRock’s High Conviction Alpha suite of active equity funds. This range forms part of the four suites that comprise BlackRock's Active Equities platform: Systematic Alpha, High Conviction, Specialised Outcomes and Thematics.