Sarto Capital Management launches a unique systematic fund in Estonia

Sarto Global Systematic Equity Fund uses a 200/100 active-extension structure, combining a broad equity-market exposure with systematically selected long and short positions. The strategy maintains approximately two euros of long exposure and one euro of short exposure for every euro of investor capital. The positions are selected by a systematic model developed by Sarto Capital Management, combining multiple systematic factors and well-documented market anomalies while maintaining net market exposure of approximately 100%.

“The proprietary strategy has been developed over several years of rigorous testing and refinement, drawing on academic, empirical and quantitative research, combined into a single systematic investment process,” said Viljar Vald, co-founder and Chief Investment Officer of the fund. “Our edge comes from three elements: a proprietary combination of factors and market anomalies, broad diversification across developed equity markets, and a capital-efficient structure that allows these return sources to be combined efficiently within a single portfolio. The strategy’s long-term objective is to deliver higher returns than the MSCI World Index while maintaining a similar level of risk. This is an objective, not a guarantee – the target may not be achieved, and investing involves the risk of loss of the invested capital.”

A strategy of this kind requires long-term discipline. “Earning risk premia requires a willingness to endure periodic phases of underperformance relative to the market. This is precisely why such strategies are primarily used by professional and institutional investors,” Vald added.

“Estonia’s fund sector has so far focused mainly on real estate, private equity and long-only equity positions,” said Andres Rätsepp, co-founder and Chief Executive Officer. “Our ambition is to establish an internationally recognised systematic investment manager by offering professional investors access to an effective strategy that remains uncommon globally.”

“Every equity investor is forced to pick a lane. Own the growth and wear the full drawdown, or hedge the drawdown and give up the compounding you bought equities for. You end up owning a compromise, or two positions that quietly cancel each other out. Sarto is built so you do not have to make that choice: full global equity participation, with a defensive tilt built into the structure, not bolted on afterward,” Rätsepp added.

The fund has grown out of the founders’ management of their own capital. The same strategy has been implemented with the founders’ capital for over a year, since spring 2025, and is now being opened to other professional investors and to well-informed investors treated as equivalent to professional investors. The fund’s anchor investor is Sarto Holding, which is also one of the fund’s founders, and the founders invest in the fund alongside other investors.

Under the sub-threshold AIFM regime, the fund’s assets are capped at 100 million euros. Approximately half of the fund’s current capacity has already been committed. As the fund grows, the manager intends to apply for a full fund management licence, removing the current asset cap and enabling the fund to scale internationally.

This press release is a marketing communication and does not constitute a public offering of fund units, an investment recommendation or investment advice. The fund is intended solely for professional investors and for well-informed investors treated as equivalent to professional investors within the meaning of the Estonian Securities Market Act. Investing involves risks, including the risk of partial or total loss of the capital invested. Before making any investment decision, please review the fund’s terms and conditions and other investor documents and, where necessary, consult a qualified adviser.