France’s Fourpoints settles in after merger
Fourpoints Invesment Managers, created in May 2012 by the merger of IT Asset Management and PIM Gestion France, has given an update on its investment style and expectations for the rest of 2012 into 2013.
Fourpoints Investment Managers was created in May 2012 as a result of the merger of IT Asset Management and PIM Gestion France. IT Asset Management was created in 1994 by Muriel Faure and Benoit Flamant, while PIM Gestion France was created in 1998 by Beatrice Philippe and Michel Raud.
Fourpoints remains part of the Philippe group, established in 1931 with offices in New York and Paris. It now has $1bn in assets under management in a mix of open-ended equity funds and institutional mandates. About 95% of assets are invested in equities and approximately 45% in US equities. The firm has 10 portfolio managers/analysts running concentrated portfolios of 30 to 50 stocks.
Here the managers answer questions about the firm and their investment style:
What was the rationale for the merger?
PIM Gestion specialized in global equities, and while most of our assets were in US equities we also managed European-only and global portfolios. We realised we didn’t have the investing expertise the information technology sector required, as skills in more traditional sectors may not always transfer well to the technology sector.
We were therefore interested to merge with IT Asset Management as that was their specialty and they had a deep knowledge of the sector. We were thrilled to learn that not only did the company have high quality, high calibre people, but its philosophy was similar to ours.
IT Asset Management is global in its approach, working to identify themes and then find the best companies worldwide to benefit from these growth trends. IT Asset Management had a strong brand but lacked scale.
Equities tend to be cyclical and investing only in one sector meant we were even more cyclical. We were interested in smoothing out the cycle and gaining scale, both of which we were able to achieve by pairing with a larger, more diversified asset manager.”