Novus maintains a proprietary aggregate data index called the Novus Hedge Fund Universe (HFU) that is based on public disclosures from approximately 1,500 hedge fund managers, and weighted on reported market value. Novus divides this data index into seven portfolio categories, detailed below.
Fundamental Equity hedge funds from the Novus Hedge Fund Universe are used in Novus’ research on conviction, and are now leveraged for the Novus Barclays Public Ownership Hedge Fund Conviction Index Family.
When a stock accounts for a large portion of a manager’s portfolio, the stock is considered an investment with conviction. Novus' research shows that the high conviction portion of a manager’s portfolio tends to outperform both its low conviction portion and also broader market benchmarks.
“Conviction reflects a manager's skill in stock picking and position sizing. Stocks with high conviction tend to generate alpha more smoothly by comparison, and navigate well through market retracements.”- Stan Altshuller, Chief Research Officer Novus Partners
Barclays has partnered with Novus to develop an investable index family which identifies high conviction stocks from within the hedge fund universe, based on public regulatory filings. The Public Ownership Hedge Fund Conviction Index Family represents portfolios comprised of liquid stocks in which multiple hedge funds have invested with conviction.
“We are very pleased to be able to leverage Novus’ unique expertise in this space to launch these indices.”- Benedict Redmond, Director EFS Solutions Barclays
As described above, these indices rely solely on the analysis of publicly available holdings data from 13F regulatory filings of Fundamental Equity hedge funds. No private data from our clients or any third parties is utilized, analyzed, integrated, or referenced in any way in the creation of these indices.
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This material should not be construed as an offer to sell or the solicitation of an offer to buy any security, which may only be made by prospectus or other offering document. Novus is not soliciting any specific action based on this material. It does not constitute a recommendation or take into account the particular investment objectives, financial conditions, or needs of individual clients.