F-Squared Tops $10B In AUM

Newton, Mass.-based quantitative investment firm F-Squared Investments has hit an important milestone: it now manages over $10 billion.

The figure represents growth of $5.6 billion over 2011—an increase the firm attributes to strong demand for its AlphaSector products, primarily its advisor solutions and alternatives business units.

F-Squared attracted $1.5 billion for its separately managed accounts in 2012 while its liquid alternatives offerings—commercially launched in 2012 through a sub-advised 40 Act mutual fund, SMAs, and institutional investment vehicles—grew by more than $400 million.

"Our growth over the past two years reflects growing recognition of the need for a different approach to investing that prioritizes downside risk management and repeatability of returns, rather than attempting to just beat benchmarks," said Howard Present, F-Squared president and CEO, in a statement.

"Investors are tired of losing money, and financial professionals at all levels recognize that clients cannot reach their investment goals while being forced to repeatedly suffer through significant periods of loss.”

F-Squared has also grown as a business, hiring 14 additional employees in 2012, with plans to hire more sales and investment staff in 2013.