Overview
The GMO World Market Neutral Strategy seeks total return by maintaining long exposure to stocks that we consider attractive and short exposure to stocks that we consider unattractive. The Strategy uses a combination of proprietary stock selection models such as Valuation, Quality, and Momentum to determine the attractiveness of each individual stock. The eligible universe for both the long and short side consists of developed market equities. It is expected that the Strategy will have a low correlation to traditional risk assets, and we would not expect there to be significant net exposures to any country, sector, or industry group.
Facts
Performance
Documents
Risks
Risks associated with investing in the Strategy may include: (1) Accelerated Transaction Risk: for a Fund to take advantage of certain available investment opportunities, GMO may need to make investment decisions on an expedited basis. In such cases, the information available to GMO at the time of an investment decision may be limited. GMO may not, therefore, have access; (2) Adjustable-Rate Securities Risk: Although the rate adjustment feature may act as a buffer to reduce sharp changes in the market value of adjustable rate securities, changes in market interest rates or changes in the issuer’s creditworthiness may still affect their market value; and (3) Asset-Backed and Related Securities Risk: Asset-backed securities are exposed to greater risk of severe credit downgrades, illiquidity, and defaults than many other types of fixed income investments. This is not a complete list of risks associated with investing in the Strategy. Please contact GMO for more information.