Key Takeaways
- • Artemis has launched the Artemis Atlas Fund, its first market-neutral equity fund managed by Ambrose Faulks, targeting double-digit annualized returns through a long/short strategy with low or neutral net market exposure.
- • The fund maintains a UK-focused portfolio with at least 51% invested in UK companies and up to 49% allocated to developed international markets, designed to minimize correlation with broader equity markets by exploiting pricing inefficiencies.
- • Portfolio structure includes 25–40 long positions in high-conviction stocks and a greater number of smaller short positions implemented primarily via pair trading using contracts for difference (CFDs), with gross exposure typically ranging between 100% and 300% of net asset value.
- • The fund defines market neutral as maintaining between -20% and +20% net exposure to equities, targeting positive returns over rolling 12-month periods across varying macroeconomic conditions rather than consistent monthly performance.
- • Ambrose Faulks will leverage support from Artemis's UK and global equity investment teams, comprising over 30 investment professionals, while continuing to co-manage the Artemis UK Select Fund with Ed Legget.
Summary
Artemis has entered the market-neutral long/short equity space with the launch of the Artemis Atlas Fund, marking the firm's first offering in this strategy category. The fund is managed by Ambrose Faulks, who brings existing experience from his co-management role on the Artemis UK Select Fund alongside Ed Legget. This strategic move reflects growing institutional interest in hedge fund-style equity strategies within traditional asset management.
The fund employs a long/short structure designed to deliver positive returns across diverse market environments by maintaining near-zero net exposure to equities. Artemis formally defines market neutral as positioning between -20% and +20% net equity exposure. The investment objective targets double-digit annualized returns by balancing long and short positions while minimizing correlation with traditional equity market movements. This approach prioritizes identification of pricing inefficiencies and disciplined risk management over market directional exposure.
Geographically, the portfolio maintains a UK-centric bias with at least 51% of assets invested in UK companies, providing flexibility to allocate up to 49% to developed international markets. The long book will comprise 25–40 high-conviction positions, while the short book incorporates a larger number of positions with smaller individual exposures. Short positions are primarily executed through pair trading using contracts for difference (CFDs), which Artemis characterizes as operationally efficient. The fund may employ leverage, with gross exposure typically ranging between 100% and 300% of net asset value.
Fund management will benefit from collaborative infrastructure across Artemis's investment platform. Faulks will work closely with over 30 investment professionals across the firm's UK and global equity teams, facilitating idea-sharing and portfolio construction discipline. The fund's structure is explicitly designed to generate returns over rolling 12-month periods rather than deliver consistent monthly performance, reflecting realistic expectations for a market-neutral strategy operating across varying macroeconomic conditions.
The fund employs a long/short structure designed to deliver positive returns across diverse market environments by maintaining near-zero net exposure to equities. Artemis formally defines market neutral as positioning between -20% and +20% net equity exposure. The investment objective targets double-digit annualized returns by balancing long and short positions while minimizing correlation with traditional equity market movements. This approach prioritizes identification of pricing inefficiencies and disciplined risk management over market directional exposure.
Geographically, the portfolio maintains a UK-centric bias with at least 51% of assets invested in UK companies, providing flexibility to allocate up to 49% to developed international markets. The long book will comprise 25–40 high-conviction positions, while the short book incorporates a larger number of positions with smaller individual exposures. Short positions are primarily executed through pair trading using contracts for difference (CFDs), which Artemis characterizes as operationally efficient. The fund may employ leverage, with gross exposure typically ranging between 100% and 300% of net asset value.
Fund management will benefit from collaborative infrastructure across Artemis's investment platform. Faulks will work closely with over 30 investment professionals across the firm's UK and global equity teams, facilitating idea-sharing and portfolio construction discipline. The fund's structure is explicitly designed to generate returns over rolling 12-month periods rather than deliver consistent monthly performance, reflecting realistic expectations for a market-neutral strategy operating across varying macroeconomic conditions.
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