FRM enters into strategic relationship with CommEq Asset Management
FRM, Man Group plc’s (“Man”) fund of hedge fund division, has formed a strategic relationship with CommEq Asset Management (“CommEq”) which involves FRM making a seed allocation to CommEq and helping CommEq launch an institutional asset management business.
CommEq seeks out previously under-explored, unstructured data sources and data streams that it believes have the potential to significantly influence the perception of corporations and hence the pricing of their securities. CommEq has developed a mature, artificial intelligence based prediction engine which aims to generate alpha from these sources through a systematic, scalable investment process.
CommEq was founded by Norwegian technology entrepreneur, Christofer Solheim. Together with Gotz von Groll and Chris Shaw, Christofer has demonstrated experience in analytics and software start-ups. As part of the relationship FRM will provide infrastructure and operational support to CommEq, as well as risk management via its Managed Accounts platform.
Patric de Gentile Williams, Head of Seeding at FRM, said:
“Following an investment of more than 150 man years in natural language processing technology and predictive systems, CommEq has developed what we view as an innovative systematic platform which we believe goes well beyond known approaches in the field. We feel this strategy may be attractive for investors looking for highly liquid, systematic, relative value investment strategies.”
CommEq Founder & CEO Christofer Solheim, said:
“Our alpha innovation and extensive research and development have enabled us to generate alpha throughout a wide range of market conditions for over five years. The strategic relationship with FRM will help us both scale our business and accelerate our investment products.”
Notes to editors:
CommEq employs more than 20 full-time staff across a number of disciplines including: statistics, applied mathematics, economics, computer linguistics, and software development. CommEq has a two and half year proprietary track record using its investment strategy based on what it views as under-explored, unstructured data sources and data streams.
FRM is a top 10 global industry allocator to hedge funds by AUM, and the largest independent European based FoHF managing commingled funds and advising institutional clients1. It has one of the industry’s largest research and investment teams – located in London, New York, Tokyo, Guernsey and Pfaffikon (Switzerland) – who are supported by institutional quality infrastructure.
The business offers clients a wide range of multi-manager investment services across the liquidity spectrum, from commingled FoHFs through managed accounts (‘MACs’) to risk management and manager seeding activities. With 15 years of experience in building MAC capabilities and USD 8.7 billion invested via MACs2, FRM’s industry-leading platform provides the access and transparency to promote better investment decisions.
1 Source: InvestHedge Billion Dollar Club Survey, March 2013, based on YE 2012 AUM.
2 As at 1 April 2013
Man is a leading alternative investment management business. It has expertise in a wide range of liquid investment styles including managed futures, equity, credit and convertibles, emerging markets, global macro and multi-manager, combined with powerful product structuring, distribution and client service capabilities. At 31 March 2013, Man managed $ 54.8 billon.
The original business was founded in 1783. Today, Man Group plc is listed on the London Stock Exchange and is a member of the FTSE 250 Index with a market capitalisation of around £ 1.5 billion. Man is a signatory to the United Nations Principles for Responsible Investment (PRI). Man also supports many awards, charities and initiatives around the world, including sponsorship of the Man Booker literary prizes. Further information can be found at www.man.com.
Notice to readers:
This Article should not be treated as constituting any representation in connection with any offer or invitation, nor shall it or any part of it form the basis of or be relied upon in any way in connection with any contract.
SOURCE: Man Group plc