Deuterium Capital Management, a US based asset manager with circa USD1 billion AUM, has acquired Jupiter Asset Management’s Global Dynamic Allocation team for an undisclosed sum.
The acquisition includes the entire Global Dynamic Allocation team, along with the associated intellectual property, including software and analytics. Deuterium will launch a new fund in January 2021, which will be aligned with the existing investment strategy.
Lead fund manager and head of global asset allocation, John Ricciardi, and portfolio manager, Dan Matthews, will join Deuterium and have more than four decades experience delivering outperformance in dynamic allocation investing. They will be joined by Osman Oszan, fund manager and Chief Investment Officer at Deuterium Capital Management. Head quant analyst, Ravi Kishore Booka, data scientist, Pramila Prasingu and quant analyst, Sarath Kotamarthi, will complete the team.
Since inception, the team’s previous fund returned 6.8 per cent pa on an annualised basis, compared to 3.1 per cent pa for the Morningstar USD Flexible Allocation sector, making it a top decile performer. The new fund will be a stand-alone Irish UCITS ICAV, as it is currently structured.
The team will continue to use their expertise in determining and interpreting near term macro-economic trends to invest in large and mega cap equities (average market cap USD92 billion), sovereign debt of the largest developed countries, currencies, and commodities to target a 6-8 per cent annualised return with a volatility of less than 8 per cent over a cycle.
John Ricciardi, who will join Deuterium as Lead Fund Manager and Head of Global Asset Allocation at Deuterium Capital Management, says: “We are delighted to be bringing our proprietary investment strategy to Deuterium. As a team we have decades of experience and a proven track record of delivering top decile outperformance. The acquisition by Deuterium, the largest single investor in the fund, provides a major growth opportunity and will deepen our long-term partnership.”
Osman Oszan, fund manager and Chief Investment Officer at Deuterium Capital Management, says: “We have a long-standing professional relationship with John and his team and have long admired their investment strategy and analytical tools. This partnership represents a great cultural fit, and we are all looking forward to a continuation of the steady, high-growth success that the fund has consistently delivered since 2012.”
