iM Global Partner has acquired a 45 per cent interest in Dynamic Beta investments (previously branded Beachhead Capital), a New York-based specialist in the liquid alternatives space.
iM Global Partner is an investment and development platform focused on acquiring strategic investments in best-in-class traditional and alternative investment firms in the US, Europe and Asia.
Dynamic Beta investments, whose strategies have outperformed relevant industry hedge fund indices and peers over the long term, is focused on delivering hedge fund performance with reasonable fees, daily liquidity and transparency through three main strategies:
-·Equity Hedge: leverages the talent and resources of some of the world’s most sophisticated equity long/short hedge funds to deliver equity-like returns with lower risk over time;
– Managed Futures: a proven diversifier with almost no correlation to equities to target capital protection during periods of market stress; and
– Multi-Asset/Stable Return: an outcome-oriented solution that can provide stable absolute returns through a complete market cycle.
Philippe Couvrecelle (pictured), chairman and CEO of iM Global Partner, says: “Dynamic Beta investments has developed a proven, clearly articulated, research-driven investment process to deliver outstanding risk/return profiles with daily liquidity and lower fees than traditional hedge funds. Our deep dive into the liquid alternatives space showed that Dynamic Beta investments’ expertise is unique. We look forward to helping to grow Dynamic Beta investments into a leading player in liquid alternative investment firm.”
Andrew Beer, managing partner of Dynamic Beta investments adds: “Since 2007, we have demonstrated that we can deliver the diversification benefits of hedge funds without high fees, gating/suspension risk, and single manager risk. The next generation of liquid alternative products must be able to match or outperform actual hedge funds with lower fees and less risk than single manager products.”
Noted Mathias Mamou-Mani, managing partner of Dynamic Beta investments and head of risk management, says: “Extensive research on hedge funds proves that most or all pre-fee returns of hedge funds can be captured through dynamically-adjusted portfolios of market instruments. This validates our position that fee reduction can generate meaningful alpha for our clients. We are excited to work with iM Global Partner to introduce our investment solutions to a broader range of investors.”
Jeff Seeley, US chief operating officer and head of distribution for iM Global Partner US added: “At the tail end of a long bull market, advisors and investors clearly appreciate the need to diversify into alternatives, yet too many liquid alternative products have underperformed or not met their stated investment objectives. Dynamic Beta investments’ product suite can provide a compelling solution for institutions, financial advisors, RIAs, high net worth clients and intermediary model portfolios – whether through ETFs, separately managed accounts or signal delivery to UMA platforms – to target capital protection and generate positive returns during bear markets.”
RBC Capital Markets served as financial advisor to Dynamic Beta investments in this transaction.