Key Takeaways
- • Allspring Lux Worldwide Fund – Global Long/Short Equity Fund (GLS) won The Hedge Fund Journal's UCITS Hedge Performance Award for Best Performing Fund over 5 Years ending December 2022 in the Long/Short Equity Global – Quantitative category (AUM > $1bn), based on risk-adjusted returns.
- • GLS delivered 3.39% of alpha relative to its beta-adjusted net long exposure of approximately 50%, with net stock exposure around 70%, demonstrating effective factor management during a volatile period marked by significant growth-value rotation between 2018 and 2022.
- • In 2022, GLS posted a small absolute loss due to net long positioning, but a market-neutral version of the strategy would have been profitable; the fund's outperformance was primarily driven by short positions in high-beta stocks, which underperformed significantly in U.S. markets.
- • The strategy employs a low-beta, multi-factor, and global approach within Allspring's "defensive" equity umbrella, alongside equity income, sustainability-oriented, and alpha strategies managed by the Systematic Edge team.
Summary
Allspring Lux Worldwide Fund – Global Long/Short Equity Fund (GLS) has been recognized by The Hedge Fund Journal with its UCITS Hedge Performance Award for Best Performing Fund over a five-year period ending December 2022. The fund competed in the Long/Short Equity Global – Quantitative category for managers with assets under management exceeding $1 billion, with the award based on risk-adjusted returns. This recognition reflects the fund's ability to navigate and outperform during one of the most volatile periods in recent market history.
Between 2018 and 2022, GLS demonstrated particular skill in managing exposure through multiple episodes of violent factor rotation, especially between growth and value equities. The fund controlled volatility effectively during this turbulent period, a critical differentiator in long/short equity strategies. In 2022 specifically, while GLS recorded a small absolute loss attributable to its net long positioning, the underlying market-neutral version of the strategy would have generated positive returns, underscoring the value embedded in the systematic selection process independent of directional beta exposure.
The fund added 3.39% of alpha relative to its beta-adjusted net long exposure of approximately 50%, with overall net exposure to stocks at around 70%. According to Harindra de Silva, Co-Head of Research and portfolio manager for Allspring Global Investments' Systematic Edge team, the major performance contributor in 2022 was the fund's short positions in high-beta stocks, which experienced severe underperformance, particularly in U.S. markets. This systematic approach to factor exposure management—actively rebalancing between long and short positions—distinguishes GLS within the broader competitive landscape.
Allspring Global Investments operates the strategy through its Systematic Edge team, which applies quantitative methodologies across equities, fixed income, customized separately managed accounts, multi-asset strategies, and options. Within the equities vertical, GLS is positioned under Allspring's "defensive" investment umbrella alongside equity income, sustainability-oriented, and alpha-focused strategies, reflecting a diversified approach to equity management across different investor mandates and risk profiles.
Between 2018 and 2022, GLS demonstrated particular skill in managing exposure through multiple episodes of violent factor rotation, especially between growth and value equities. The fund controlled volatility effectively during this turbulent period, a critical differentiator in long/short equity strategies. In 2022 specifically, while GLS recorded a small absolute loss attributable to its net long positioning, the underlying market-neutral version of the strategy would have generated positive returns, underscoring the value embedded in the systematic selection process independent of directional beta exposure.
The fund added 3.39% of alpha relative to its beta-adjusted net long exposure of approximately 50%, with overall net exposure to stocks at around 70%. According to Harindra de Silva, Co-Head of Research and portfolio manager for Allspring Global Investments' Systematic Edge team, the major performance contributor in 2022 was the fund's short positions in high-beta stocks, which experienced severe underperformance, particularly in U.S. markets. This systematic approach to factor exposure management—actively rebalancing between long and short positions—distinguishes GLS within the broader competitive landscape.
Allspring Global Investments operates the strategy through its Systematic Edge team, which applies quantitative methodologies across equities, fixed income, customized separately managed accounts, multi-asset strategies, and options. Within the equities vertical, GLS is positioned under Allspring's "defensive" investment umbrella alongside equity income, sustainability-oriented, and alpha-focused strategies, reflecting a diversified approach to equity management across different investor mandates and risk profiles.
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