Key Takeaways
- • Sirios Capital, a Boston-based hedge fund founded in 1999, has launched Europe's first long-short equity ETF with an embedded performance fee through a partnership with iM Global Partner (iMGP), marking a significant structural innovation in the European alternatives space.
- • The iMGP Sirios Absolute Return Fund R EUR HP PR UCITS ETF (SARF) charges a 1.20% total expense ratio plus a 20% performance fee on outperformance above the previous net asset value, using a "high-on-high" fee model measured over a one-year financial period.
- • Long-short equity ETFs are experiencing a market re-entry in Europe following regulatory approval of Ossiam products, with SARF representing the debut of Sirios's long-short strategy in the European market and addressing a gap described as "fewer players in the market" for liquid alternatives.
- • SARF maintains a conservative net equity exposure strategy capped at 30%, managed by six sector-specialist analysts with bottom-up fundamental research across multiple sectors and equal weighting across sector allocations.
- • iMGP, the Paris-based multi-boutique distribution partner, has established a track record of bringing US hedge fund strategies to European ETFs, previously launching managed futures products in 2025.
Summary
Sirios Capital Management and iM Global Partner have introduced the iMGP Sirios Absolute Return Fund R EUR HP PR UCITS ETF (SARF), representing Europe's first long-short equity ETF to include a performance fee structure. The launch reflects a broader re-entry of long-short equity products into the European market following regulatory approvals, with Ossiam receiving clearance for similar products. This development addresses what iMGP leadership describes as a contraction in the liquid alternatives space, where fewer institutional-grade managers currently operate.
The fund's fee structure represents a notable innovation for European ETF distribution. SARF charges investors a 1.20% total expense ratio plus a 20% performance fee on gains above the previous net asset value at which performance fees were crystallized, measured annually. This "high-on-high" fee model aligns manager and investor incentives by only charging performance fees on new gains above prior crystallization points. The product is available as both an ETF and mutual fund vehicle.
Sirios Capital, established in 1999, specializes in bottom-up fundamental long-short equity strategies across multiple sectors. The SARF management team comprises six sector-specialist analysts who maintain deliberately conservative positioning, with net equity exposure capped at 30% and equal-weight sector allocation. This conservative net exposure approach positions the strategy as a defensive alternative to traditional long-only European equity exposure during periods of market volatility or valuation stress.
iMGP, headquartered in Paris, has developed a multi-boutique model for distributing US hedge fund strategies within European regulatory frameworks. The firm previously launched managed futures ETF products in 2025, establishing operational capability in structuring and distributing alternative strategies compliant with UCITS standards. According to Julien Froger, iMGP's head of Europe, SARF addresses institutional demand for liquid alternatives at a time when capacity constraints and regulatory pressures have reduced the number of active managers offering such strategies in the region.
The fund's fee structure represents a notable innovation for European ETF distribution. SARF charges investors a 1.20% total expense ratio plus a 20% performance fee on gains above the previous net asset value at which performance fees were crystallized, measured annually. This "high-on-high" fee model aligns manager and investor incentives by only charging performance fees on new gains above prior crystallization points. The product is available as both an ETF and mutual fund vehicle.
Sirios Capital, established in 1999, specializes in bottom-up fundamental long-short equity strategies across multiple sectors. The SARF management team comprises six sector-specialist analysts who maintain deliberately conservative positioning, with net equity exposure capped at 30% and equal-weight sector allocation. This conservative net exposure approach positions the strategy as a defensive alternative to traditional long-only European equity exposure during periods of market volatility or valuation stress.
iMGP, headquartered in Paris, has developed a multi-boutique model for distributing US hedge fund strategies within European regulatory frameworks. The firm previously launched managed futures ETF products in 2025, establishing operational capability in structuring and distributing alternative strategies compliant with UCITS standards. According to Julien Froger, iMGP's head of Europe, SARF addresses institutional demand for liquid alternatives at a time when capacity constraints and regulatory pressures have reduced the number of active managers offering such strategies in the region.
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