Federated Hermes, Inc. Launches $ 81 Million Market Neutral Fund


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

Using a quantitative model based on fundamental variables and stock selection techniques, the fund combines long and short exposures to stocks of US companies with the aim of reducing the impact of market volatility. The fund targets returns that are uncorrelated to the US stock market.

The fund is managed by Daniel Mahr, CFA, MDT team leader; in the same way Frédéric Konopka, CFA, portfolio and trading manager; Jean-Paul Lewicke, CFA, research director; and Damien zhang, CFA, research director. They bring almost 70 years of combined industry experience to the fund and are supported by MDT’s 15-member investment team. The team has been managing the market neutral strategy in a private fund context for over 20 years.

” The use of proprietary fundamental stock selection processes developed by the Federated Hermes MDT team over the past three decades illustrates our commitment to delivering personalized options focused on specific client goals – in this case, the capital build-up over time and protection against market volatility, ” mentioned John B. Fisher, President and CEO of Federated Advisory Companies.

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

Federated Hermes, Inc. is a leading global investment manager with $ 645.8 billion in assets under management at June 30, 2021. Guided by our conviction that responsible investing is the best way to create long-term wealth, our investment solutions cover equity, bond, alternative / private markets, multi-asset and liquidity management strategies. Providing world-class active investment and engagement management services to over 11,000 institutions and intermediaries, our clients include corporations, government entities, insurance companies, foundations and endowments, banks and brokers / traders. Based at Pittsburgh, nearly 2,000 Federated Hermes employees are London, new York, Boston and offices around the world. For more information visit FederatedHermes.com.


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

Mutual funds are subject to risk and their value fluctuates. The quantitative models and analysis used by the fund may work differently from expectations and negatively affect the performance of the fund. There can be no assurance that the use of long and short positions will be successful in limiting the Fund’s exposure to national stock market fluctuations, capitalization, sector fluctuations or other risk factors. The fund may engage in short sales of securities which involves unlimited risk, including the possibility that losses will exceed the original amount invested.

Federated Securities Corp., Distributor

SOURCE Federated Hermes, Inc.

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