The GMO Equity Dislocation Strategy seeks high total return. We aim to accomplish this objective by owning attractively valued equities while correspondingly shorting equities where we believe that valuations are reflective of implausible growth expectations. The eligible universe for both the long and short side spans the market capitalization spectrum and includes both developed and emerging markets. The portfolio is diversified across sectors, countries, and regions and is intended to be broadly dollar neutral with an approximate ex-ante beta of zero.
Ben Inker and Simon Harris, the Strategy’s portfolio managers, recently sat down with Jeremy Grantham and Catherine LeGraw to discuss the current bubble in Growth stocks and how Equity Dislocation is designed to profit from it.
Read the highlights of that conversation.