GAM to take a minority investment in leading macro manager QFS
GAM Group AG (GAM), a wholly owned subsidiary of GAM Holding AG, has reached an agreement in principle to enter into a partnership with QFS Asset Management L.P. (QFS), a US-based alternative asset management boutique that specialises in currency, global macro and fixed income strategies.
As part of the agreement, GAM will acquire a minority stake of approximately 30% in QFS. The partnership will see GAM and QFS work very closely together, with GAM being responsible for the global distribution and marketing of existing and new strategies managed by QFS.
Following the formal closure of the agreement, GAM plans to introduce a Ucits product based on QFS’s flagship currency strategy in the coming months. Launched in March 1993 and trading in highly liquid instruments, the strategy has a track record of delivering uncorrelated alpha.
Since inception, it has delivered net returns to clients of 10.75% per annum (as at 31 December 2012). Over the same period its correlation to both global bonds and global equities has been very modest, at less than 0.1, differentiating it from many other alternative strategies.
David Solo, CEO of GAM, said: “The partnership with QFS is consistent with our strategy of expanding our leading offering of single manager alternative strategies. We are convinced that its experience in managing liquid, non-correlated and high-performing strategies will prove highly appealing to our sophisticated investor base.”
Established in 1983, GAM is an independent, active investment manager, delivering investment solutions to institutions, intermediaries, private clients and charities from offices in financial centres around the world.
Its $48bn in assets under management spans approximately 60 separate investment strategies across equity, fixed income, absolute return, funds of hedge funds, discretionary portfolio management and tailored investment solutions.
QFS is an institutional alternative asset management firm that applies financial theory and the scientific method to managing money. QFS employs 28 people and has over $1 billion of assets under management, including discretionary, non-discretionary, absolute return and risk advisory overlay mandates. An affiliate of QFS was founded in 1988.