London-based asset manager Threadneedle Investments has launched its Threadneedle (Lux) European Absolute Alpha Fund in response to seeing increased client demand for a UCITS European equities absolute alpha product. The fund will be invested in pan-European equities and will be managed by Paul Doyle.

High-conviction stock selection with a strong focus on company analysis and valuation will be combined with a top-down overlay to manage sector exposures while retaining focus on monitoring risk, the firm said. The portfolio will primarily take long and short positions in European equities and will aim to generate the majority of performance from stock selection.

“Despite the negative news flow surrounding Europe recently, we believe that it is an exciting time to look at European equities as we are able to find many companies at compelling valuations.  The opportunity to deliver absolute returns through fundamental and valuation analysis with high conviction long and short positions is considerable,” said Doyle.