Prudential Investments Launches New Market-Neutral Fund

Vanessa Doctor

28 April 2010

Prudential Investments has just launched the Prudential Jennison Market Neutral Fund, which aims to encourage consistent returns from both up and down markets.

In a statement, the company said that the fund's market approach combines long and short strategies, holding long positions in stocks that managers expect to outperform the market and shorting stocks that are likely to underperform. The fund will be managed by equity manager Jennison Associates.

"This approach may reduce portfolio volatility and could help investors avoid the temptation to respond emotionally to major market shifts," said Judy Rice, the president of Prudential Investments.

"Investors should view the fund as an opportunity to reduce the impact of market movements on their portfolio, gain potential downside protection in turbulent markets, and enhance their diversification," Rice added.

The long portfolio is managed by Spiros Segalas, the director, president and chief investment officer of Jennison, David Kiefer, the company's managing director and large cap head, and John Mullman, managing director and portfolio manager for small and mid-caps.

Mehdi Mahmud, Jennison's chief operating officer, and Jason McManus, vice president, are handling the short portfolio.