Hedge Fund Sirios Launches Long/Short Equity ETF with Performance Fee

Europe's first active ETF to charge additional rates for fund outperformance

Apr. 7, 2026 at 9:35am

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An extreme close-up of heavy, polished banking machinery and mechanisms, conveying the intricate financial infrastructure and institutional power behind the launch of a new hedge fund ETF.The launch of Sirios Capital Management's first European ETF, which charges a performance fee, signals the growing complexity and institutional power behind the continent's evolving investment landscape.Boston Today

Boston-based hedge fund Sirios Capital Management has launched a long/short equity ETF in partnership with iM Global Partner (iMGP) in Europe's first example of an ETF charging a performance fee. The iMGP Sirios Absolute Return Fund R EUR HP PR UCITS ETF (SARF) debuts with a total expense ratio (TER) of 1.20%, charging an additional 20% of any fund outperformance.

Why it matters

This move represents a new frontier of product development in Europe's ETF market, as hedge fund strategies and performance fees become more common in the traditionally low-cost, passive investment space. It also signals a shift towards more complex, actively managed 'liquid alternatives' as investors seek diversification and downside protection amid stretched equity valuations.

The details

The SARF strategy represents Sirios Capital Management's first foray into the European market. Founded in 1999, the firm is a long/short equity specialist which uses bottom-up fundamental analysis across multiple sectors to identify winners and losers. The fund will be managed by six sector-specialist analysts and maintain a low net exposure to equities - no more than 30% long, with each sector equally weighted.

  • The iMGP Sirios Absolute Return Fund R EUR HP PR UCITS ETF (SARF) launched on April 7, 2026.

The players

Sirios Capital Management

A Boston-based hedge fund that specializes in long/short equity strategies using bottom-up fundamental analysis.

iM Global Partner (iMGP)

A Paris-based 'multi-boutique' investment firm that partners with specialist managers to bring their strategies to European clients.

John F. Brennan

The managing director of Sirios Capital Management.

Julien Froger

The head of Europe at iMGP.

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What they’re saying

“After many years in the fundamental equity long/short space the timing is right for an absolute return strategy. With equity valuations stretched and the market bifurcated, a low-net fundamental-driven product will benefit from strong stock-picking dynamics.”

— John F. Brennan, Managing Director, Sirios Capital Management

“By bringing this strategy to market in a UCITS structure, we're providing international investors with a new option in the liquid alternatives space at a time when there are fewer players in the market than in the past.”

— Julien Froger, Head of Europe, iMGP

What’s next

The iMGP Sirios Absolute Return Fund R EUR HP PR UCITS ETF (SARF) is expected to attract significant interest from European investors seeking alternative sources of returns and downside protection amid volatile market conditions.

The takeaway

The launch of Sirios Capital Management's first European ETF, which charges a performance fee, represents a significant evolution in the European ETF market. This move signals a growing appetite for more complex, actively managed 'liquid alternative' strategies as investors seek diversification and downside protection in the current market environment.