Novus and Barclays Public Data Partnership
Novus and Barclays launch Public Ownership Hedge Fund Conviction Index Family, powered by Novus research

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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.

Novus Hedge Fund Universe

Multi-Strategy

  • Long Only
  • Long/Short
  • Market Neutral

Fundamental Equity

  • Long/Short
  • Long Only
  • Market Neutral
  • Event

Activist

  • Activist

Credit

  • Long Only
  • Long/Short
  • Distressed
  • Structured

Macro

  • Long Only
  • Long/Short
  • Market Neutral

Relative Value

  • Merger Arbitrage
  • Asset-backed
  • Convertible Arbitrage
  • Volatility

Quant

  • Long Only
  • Long/Short
  • Market Neutral

What is Conviction?

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 Partnership

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

For inquiries about the index product, contact Barclays directly at:

NovusIndex@barclays.com