Federated Hermes, Inc. launches $81 million market neutral fund
- Expands proprietary Federated Hermes MDT quantitative offerings
PITTSBURGH, Sept. 29, 2021
PITTSBURGH, Sept. 29, 2021 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active, responsible investing, today announced the launch of the Federated Hermes MDT Market Neutral Fund, which seeks to provide long-term capital appreciation while limiting exposure to general stock market risk.
Through a quantitative model driven by fundamental and technical stock selection variables, the fund combines long and short exposures in stocks of U.S. companies as it seeks to reduce the impact of market volatility. The fund aims for returns that are uncorrelated to the U.S. stock market.
The fund is managed by Daniel Mahr, CFA, head of the MDT team; along with Frederick Konopka, CFA, portfolio and trading manager; John Paul Lewicke, CFA, research manager; and Damien Zhang, CFA, research manager. They bring nearly 70 years of combined industry experience to the fund, and they are supported by the 15-member MDT investment team. The team has managed the market neutral strategy in a private fund context for more than 20 years.
''The use of proprietary fundamental stock selection processes pioneered by the Federated Hermes MDT team over the past three decades exemplifies our commitment to offering customized options focused on specific client goals—in this case, building capital over time and helping to protect against market volatility,'' said John B. Fisher, president and chief executive officer of Federated Advisory Companies.
The Federated Hermes MDT Market Neutral Fund inherits the historical performance of the Hancock Horizon Quantitative Long/Short Fund, whose assets Federated Hermes acquired in a transaction completed and announced Sept. 28, 2021. The Federated Hermes MDT Market Neutral Fund uses the ICE BofA 3-Month Treasury Bill Index as its benchmark. It is initially being marketed in IS and A shares.
Federated Hermes, Inc. is a leading global investment manager with $645.8 billion in assets under management as of June 30, 2021. Guided by our conviction that responsible investing is the best way to create wealth over the long term, our investment solutions span equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies. Providing world-class active investment management and engagement services to more than 11,000 institutions and intermediaries, our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes' nearly 2,000 employees include those in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com.
Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us or visit FederatedInvestors.com. Please carefully read the summary prospectus or the prospectus before investing.
Mutual funds are subject to risks and fluctuate in value. The quantitative models and analysis used by the fund may perform differently than expected and negatively affect fund performance. There is no guarantee that the use of long and short positions will succeed in limiting the Fund's exposure to domestic stock market movements, capitalization, sector-swings or other risk factors. The fund may make short sales of securities, which involves unlimited risk including the possibility that losses may exceed the original amount invested.
Federated Securities Corp., Distributor
SOURCE Federated Hermes, Inc.