Affiliated Managers Group (AMG) is to acquire an equity interest in hedge fund firm Ivory Investment Management, with Ivory’s senior partners continuing to hold a majority of the equity of the business and direct its day-to-day operations.
Founded in 1998, Ivory has a 17-year history of alpha generation through a research-intensive, fundamental value-based approach. As of 30 September, 2015, Ivory managed approximately USD3.6 billion in assets across long/short equity and long-only investment strategies, with the principal investment objective of delivering high absolute returns on a risk-adjusted basis, with low correlation to market indices. The firm has a consistent track record of capital preservation during periods of market dislocation, and has generated significant alpha across multiple market cycles since inception, meaningfully outperforming the S&P 500 across all relevant time periods. Led by Founder and Head Portfolio Manager Curtis Macnguyen, the firm’s senior partner group includes President and Chief Operating Officer Mark Waissar, Senior Portfolio Managers Neil Chudgar and Brad Lundy, and Head Trader Matt Bailey.
“With a long-term track record of generating exceptional risk-adjusted returns, Ivory is regarded as one of the industry’s premier long/short equity managers,” says Sean M Healey (pictured), Chairman and Chief Executive Officer of AMG. “We believe that with the firm’s disciplined approach to generating alpha, in addition to its demonstrated ability to protect capital in both positive and negative market environments, Ivory has excellent prospects for strong growth. Clients around the world continue to increase their allocations to outstanding alternative firms, and Ivory is positioned to benefit from this ongoing trend. I am very pleased to welcome Curtis Macnguyen and his partners to our Affiliate group, and we look forward to working with them on a range of strategic initiatives to help enhance the forward growth of the firm, particularly in their long-only business, which has very strong long-term investment performance and tremendous growth prospects.”
“Given AMG’s unparalleled track record of successful partnerships with boutique alternative investment firms around the world, we are excited to join its impressive group of Affiliates,” said Mr. Macnguyen. “AMG is the ideal partner for Ivory, allowing for the preservation of our firm’s entrepreneurial culture and our focus on providing clients with strong absolute returns.”
As part of the transaction, Ivory’s senior partners have agreed to long-term commitments with the firm. The transaction is expected to close by 31 December, 2015. The terms of the transaction have not been disclosed
