Federated Hermes, Inc. launches $81 million market neutral fund

Rhea-AI Summary

Federated Hermes, Inc. (NYSE: FHI) announced the launch of the Federated Hermes MDT Market Neutral Fund on September 29, 2021, aiming for long-term capital appreciation while minimizing stock market risk. This fund employs a quantitative model with both long and short stock positions to reduce market volatility impacts, using the ICE BofA 3-Month Treasury Bill Index as a benchmark. Managed by an experienced team with nearly 70 years of combined industry expertise, the fund builds on the historical performance of the Hancock Horizon Fund, which was transitioned to Federated Hermes.

Positive

• Launch of the Federated Hermes MDT Market Neutral Fund aims for long-term capital appreciation.
• Utilizes a quantitative model for fundamental and technical stock selection.
• Experienced management team with nearly 70 years of combined experience.

Negative

• Fund performance relies on quantitative models that may not perform as expected.
• Short selling involves unlimited risk, including potential losses exceeding the original investment.

PITTSBURGH, Sept. 29, 2021 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active, responsible investing, today announced the launch of the Federated Hermes MDT Market Neutral Fund, which seeks to provide long-term capital appreciation while limiting exposure to general stock market risk.

Through a quantitative model driven by fundamental and technical stock selection variables, the fund combines long and short exposures in stocks of U.S. companies as it seeks to reduce the impact of market volatility. The fund aims for returns that are uncorrelated to the U.S. stock market.

The fund is managed by Daniel Mahr, CFA, head of the MDT team; along with Frederick Konopka, CFA, portfolio and trading manager; John Paul Lewicke, CFA, research manager; and Damien Zhang, CFA, research manager. They bring nearly 70 years of combined industry experience to the fund, and they are supported by the 15-member MDT investment team. The team has managed the market neutral strategy in a private fund context for more than 20 years.

''The use of proprietary fundamental stock selection processes pioneered by the Federated Hermes MDT team over the past three decades exemplifies our commitment to offering customized options focused on specific client goals—in this case, building capital over time and helping to protect against market volatility,'' said John B. Fisher, president and chief executive officer of Federated Advisory Companies.

The Federated Hermes MDT Market Neutral Fund inherits the historical performance of the Hancock Horizon Quantitative Long/Short Fund, whose assets Federated Hermes acquired in a transaction completed and announced Sept. 28, 2021. The Federated Hermes MDT Market Neutral Fund uses the ICE BofA 3-Month Treasury Bill Index as its benchmark. It is initially being marketed in IS and A shares.

Federated Hermes, Inc. is a leading global investment manager with $645.8 billion in assets under management as of June 30, 2021. Guided by our conviction that responsible investing is the best way to create wealth over the long term, our investment solutions span equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies. Providing world-class active investment management and engagement services to more than 11,000 institutions and intermediaries, our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes' nearly 2,000 employees include those in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com.

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Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us or visit FederatedInvestors.com. Please carefully read the summary prospectus or the prospectus before investing.

Mutual funds are subject to risks and fluctuate in value. The quantitative models and analysis used by the fund may perform differently than expected and negatively affect fund performance. There is no guarantee that the use of long and short positions will succeed in limiting the Fund's exposure to domestic stock market movements, capitalization, sector-swings or other risk factors. The fund may make short sales of securities, which involves unlimited risk including the possibility that losses may exceed the original amount invested.

Federated Securities Corp., Distributor

View original content:https://www.prnewswire.com/news-releases/federated-hermes-inc-launches-81-million-market-neutral-fund-301388214.html

SOURCE Federated Hermes, Inc.

FAQ

What is the Federated Hermes MDT Market Neutral Fund?

The Federated Hermes MDT Market Neutral Fund is a newly launched investment fund focused on long-term capital appreciation while mitigating stock market risk.

Who manages the Federated Hermes MDT Market Neutral Fund?

The fund is managed by a team led by Daniel Mahr, CFA, along with Frederick Konopka, CFA, John Paul Lewicke, CFA, and Damien Zhang, CFA.

When was the Federated Hermes MDT Market Neutral Fund launched?

The Federated Hermes MDT Market Neutral Fund was launched on September 29, 2021.

What benchmark does the Federated Hermes MDT Market Neutral Fund use?

The fund uses the ICE BofA 3-Month Treasury Bill Index as its benchmark.

What is the asset value of Federated Hermes as of June 30, 2021?

Federated Hermes reported $645.8 billion in assets under management as of June 30, 2021.