AMG Buys Stake in Braga's Systematica From BlueCrest Capital Management

Nov 9 2015 | 10:17am ET

Michael Platt’s BlueCrest Capital Management has sold the majority of its interest in Leda Braga’s Systematica Investments to hedge fund investor Affiliated Managers Group.

Braga is a former top quant trader at BlueCrest, from which her firm was spun out in late 2014. 

Terms of the transaction, which is expected to close by year-end, were not disclosed. The deal leaves leaves BlueCrest with a small stake in the firm, while Systematica’s senior management have agreed to long-term commitments with the firm, will continue to own a majority of the business, and will direct day-to-day operations. 

BlueCrest has struggled this year, beset with mediocre returns and billions of dollars in redemptions. Systematica, meanwhile, bucked the downdraft experienced by many quantitative hedge funds this summer, gaining 6.2% in its flagship BlueTrend strategy in August when many of its peer hedge funds were on the ropes. BlueTrend is up 5.9% through the end of the third quarter, according to Bloomberg.

Systematica recently overtook BlueCrest in assets under management, overseeing approximately $8.8 billion in assets for a diverse global client base as of October 1. Meanwhile, BlueCrest managed around $7.9 billion as of the same date. 

“With an outstanding long-term investment track record and tremendous expertise in systematic trading and managed future strategies, Systematica is widely regarded as an industry leader by the most sophisticated clients worldwide,” said Healey, who serves as AMG’s chairman and CEO, in a statement. “Through our partnership with Systematica, AMG is adding a highly-differentiated array of new strategies to our industry-leading return-oriented product set.”

“We are excited to join AMG’s outstanding group of Affiliates,” said Ms. Braga. “With its unrivaled success in partnering with the best boutique investment firms around the world, and broad range of strategic capabilities, especially its leading global distribution platform, AMG is the ideal partner for Systematica.”

Founded in 1993, Affiliated Managers Group invests into investment firms. Led by former Goldman Sachs executive Sean Healey, the publicly held company owns stakes in many well-known alternative investment companies, including ValueAct Capital, Abax Investments, Veritas Investment Management, Third Avenue and AQR Capital Management. As of September 30, 2015, AMG’s aggregate assets under management were approximately $619 billion, pro forma for pending and closed investments, in more than 500 investment products.

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