France’s seeding fund Emergence invests in Fideas Capital

France’s incubation fund Emergence and its adviser for French Sicav. NewAlpha Asset Management, have announced a strategic investment with Fideas Capital  for the sub-fund of Emergence dedicated to European equities.

The long-only European equity sub-fund of Emergence has invested €35m in the European equities quantitatively driven fund managed by Fideas Capital.

The investment aims to boost Fideas’ potential and presence alongside major institutional investors and private investment managers, on the domestic and international markets.

Fideas is to merge soon with Rivage Gestion, an independent investment manager specialised in credit. The operation would enable Fideas to cross the €500m cap of assets under management.

Launched in 2005 by Pierre Filippi. Fideas Capital currently manages €400m in assets. The company has built a quantitative process called “Maximum Diversity”.

Maximum diversity is a ‘smart beta’ investment process that aims to receive the market return while reducing the volatility by selecting individual risks that can be volatile but few correlated.

This approach optimises the risk reward properties of the portfolio by effectively reducing the global risk of the portfolio without depriving investments of the high return potential of volatile assets.

Fideas remains away from the weightings of the MSCI index and allocates its portfolio to indexes covering countries and sectors from the Eurozone and not to stocks picked individually.

Emergence’s investment in Fideas aim to bring investors the performance of the selected fund and a participation in the growth of the company through a revenue sharing scheme.

Fideas is the tenth company seeded or accelerated by the French Sicav “Emergence” through its two sub-funds, ‘Performance Absolue’ (absolute return) and ‘Actions’ (European equities).

Former seedings include partnerships with Focus Asset Managers, Financière Arbevel, Talence Gestion and Finaltis.

NewAlpha Asset Management is a subsidiary of La Française Group and OFI AM specialised in emerging manager seeding for institutional investors.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is deputy editor and French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

Read more from Adrien Paredes-Vanheule

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