SunTrust's Trusco Capital Management takes minority stake in 130/30 specialist
Trusco Capital Management, an asset management subsidiary of the Atlanta-based SunTrust Banks financial group, has signed a definitive agreement to acquire a minority equity interest in Alpha Equity Management.
Alpha Equity manages a variety of equity hedge funds and is one of the pioneers in active extension strategies, also known as 130/30 funds, in which is boasts track records of up to six years. According to Trusco, its strategic relationship with Alpha Equity will allow it to share in the growth it expects for alternative investments, especially 130/30 strategies.
'We are pleased to be adding Alpha Equity's products to Trusco Capital's line-up,' says chairman and chief executive David H. Eidson. 'Our clients, who continue to seek new ways to diversify their portfolios, will have a keen interest in this addition given Alpha Equity's very impressive six-year performance record and its managers' expertise in running long/short portfolios.
'Alpha Equity's team is committed to delivering superior investment performance to its clients and has a high focus on client satisfaction. I have no doubt that Alpha Equity will be a good fit for our clients and our business.'
Under the partnership agreement with Trusco, Alpha Equity will operate as an independent alternative asset management boutique under the Alpha Equity name and will continue to service its current client base from its existing offices in Hartford, Connecticut and New York City.
Alpha Equity specialises in quantitative strategies designed to generate excess return through all market cycles and offers institutional and individual investors a broad range of diversified equity investment options across a variety of asset classes and risk profiles.
The firm says its investment combines advanced academic research and market experience. Its Dynamic Integrated Factor Forecasting proprietary model is intended to give appropriate weight to the factors most likely to lead to risk-adjusted excess return based on the current market environment.
'My partners and I are excited about joining forces with Trusco,' says Alpha Equity's founder and managing partner Kevin Means. 'This strategic partnership brings together Alpha Equity's strong and successful investment methodology and long-term performance record with Trusco's solid client relationships, extensive distribution network and institutional infrastructure.
'The 130/30 market represents a convergence between long-only asset management and hedge fund alternative management. We believe this partnership will help both firms capitalise upon Alpha Equity's first mover advantage in this fast growing strategy.'
Trusco is the primary provider of institutional investment management services to SunTrust Banks, which is active across the south-east states of the US and had total assets of USD175.9bn and total deposits of USD115.9bn at the end of September.
Also headquartered in Atlanta, Trusco has some USD74.1bn in assets under management for clients including corporations, endowments and foundations, healthcare organisations, insurance companies, labour unions and trade associations as well as high net worth individuals.
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