Key Takeaways
- • Lazard Asset Management launched the Lazard US Fundamental Alternative Fund, a UCITS-compliant liquid alternative strategy focused on US equities with long and short positioning capabilities across the entire market cap spectrum.
- • The fund employs a bottom-up fundamental analysis approach, taking long positions in companies with strong financial productivity and attractive valuations while shorting securities with deteriorating fundamentals or unfavorable risk/reward profiles.
- • Portfolio managers Dmitri Batsev and Jerry Liu lead the strategy from New York, supported by a 23-person US equity investment team averaging 18 years of investment experience and 12 years tenure at Lazard Asset Management.
- • The fund structure targets three investor objectives: down-market protection through short positioning, full participation in up-market rallies, and lower volatility relative to broader US equity benchmarks.
Summary
Lazard Asset Management introduced the Lazard US Fundamental Alternative Fund as a UCITS-compliant liquid alternative strategy designed to provide institutional investors with a diversified long/short equity approach to US securities. The fund operates across the full market capitalization spectrum with flexibility to adjust exposure based on bottom-up fundamental analysis.
The investment strategy centers on financial productivity as the primary driver of company valuation. Long positions target equities with strong or improving financial metrics paired with attractive valuations, while short positions focus on securities exhibiting deteriorating fundamentals, valuation excesses, or other characteristics warranting negative exposure. This dual-sided approach distinguishes the offering from traditional long-only US equity funds and positions it within the liquid alternatives category.
Portfolio management responsibility rests with Dmitri Batsev and Jerry Liu, operating from the New York office. Both managers draw support from a dedicated US equity investment team comprising 23 investment professionals. The team demonstrates substantial experience, with members averaging 18 years of total investment experience and 12 years of tenure specifically at Lazard Asset Management, indicating stability and deep institutional knowledge within the group.
According to Batsev, the fund's philosophy emphasizes forward-looking fundamental analysis across market cycles. Co-manager Liu highlighted the strategic value of expanding the investment opportunity set to encompass both long and short positions, enabling portfolio construction designed to deliver strong downside protection during market declines, full upside capture during rallies, and reduced volatility relative to overall market indices. This multi-objective framework positions the fund as a complementary holding within diversified institutional portfolios seeking alternative return streams and risk mitigation properties.
The investment strategy centers on financial productivity as the primary driver of company valuation. Long positions target equities with strong or improving financial metrics paired with attractive valuations, while short positions focus on securities exhibiting deteriorating fundamentals, valuation excesses, or other characteristics warranting negative exposure. This dual-sided approach distinguishes the offering from traditional long-only US equity funds and positions it within the liquid alternatives category.
Portfolio management responsibility rests with Dmitri Batsev and Jerry Liu, operating from the New York office. Both managers draw support from a dedicated US equity investment team comprising 23 investment professionals. The team demonstrates substantial experience, with members averaging 18 years of total investment experience and 12 years of tenure specifically at Lazard Asset Management, indicating stability and deep institutional knowledge within the group.
According to Batsev, the fund's philosophy emphasizes forward-looking fundamental analysis across market cycles. Co-manager Liu highlighted the strategic value of expanding the investment opportunity set to encompass both long and short positions, enabling portfolio construction designed to deliver strong downside protection during market declines, full upside capture during rallies, and reduced volatility relative to overall market indices. This multi-objective framework positions the fund as a complementary holding within diversified institutional portfolios seeking alternative return streams and risk mitigation properties.
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