Acadian Asset Management in Boston has begun promoting a global long/short market-neutral strategy to U.S. defined benefit plans, foundations and endowments, as well as some international investors. Beta 0 was launched in July 2002 and has had returns in the high single digits to low teens since inception, said Churchill Franklin, executive v.p. for marketing and sales. "We've been waiting to get a nice track record. Now this is the year to make a big push." The strategy goes 50% long and 50% short. U.S., European and Japanese flavors are available, but "global would be our preference," he said. "We like the broader playing field."
 
Beta 0 has $100 million under management, but a sizeable DB plan—which Franklin declined to name—has committed to invest $200 million early next week. Franklin expects to have $1 billion in the strategy by year-end. The firm, which has $35 billion under management, plans to cross-sell this strategy to existing clients and is meeting with consultants and plan sponsors. Acadian has about 30 people focused on research and Franklin said the firm takes larger active bets on its convictions than many of its competitors.
 
Acadian is also pushing its Beta 1 strategy, a global small-cap long/short fund that uses 30% of its assets to take short positions and then reinvests the profits into long-only holdings, thus allowing it to increase its exposure to long-only up to 130% of assets without using leverage. Acadian is pitching the $50 million fund as a cheaper, more transparent alternative to leveraged hedge funds. It was launched in September 2003 and returned 40% for the year ending Jan. 31.