Turner Investments To Acquire ETF Specialist Elkhorn Capital Group

Aug 30 2017 | 10:42pm ET

Turner Investments has acquired ETF specialist Elkhorn Capital Group as the active investment manager shifts focus towards passive investment vehicles. 

The acquisition has been approved by Elkhorn’s fund trustees and is not conditioned on shareholder approval, Turner said in a statement. Terms of the transaction, which is expected to close in the next several weeks, were not disclosed.

Elkhorn, led by Ben Fulton and founded as an independent entity in 2015, was formerly part of Invesco's global ETF business. The group was an early innovator in ETF and UIT spaces and was the platform through which Invesco's ETF assets grew from around $6 billion to $82 billion over nine years, the company added. The acquisition provides Turner with a cohesive team with 25 years of experience in exchange traded funds, unit investment trusts, and exchange traded notes.

"Turner's disciplined, proprietary investment processes and operating platform will bring a high degree of automation and transparency over the investment process and products,” Fulton remarked in the statement. “We believe our combined capabilities will enhance the breadth and depth of our client offering at a lower cost.”

"Turner has developed a number of multi-factor and multi-asset class investment processes, including pure alpha trading strategies and risk management systems, which will provide us with a large number of market opportunities to deploy strategies that are in high demand among investors," added Bob Turner, CIO and founder of Turner Investments. 

"We are shifting the firm's investment focus to uncorrelated returns and more predictable investment processes, more efficient and lower cost product structures utilizing the development capabilities of Elkhorn,” he continued. 

In conjunction with the transaction, Fulton will be appointed Head of Global ETFs for Turner, while Eikhorn product development executive Jordan Golz will be named head of product for ETFs. 

The shift from active to passive management is starkly visible in Turner’s AUM history. From a high of more than $25 billion in assets under management ten years ago, the company currently manages less than $300 million, according to an article in Pensions & Investments

Turner was founded in 1990 and is headquartered in Berwyn, PA. The company merged with technology platform Veracen in 2016 and is shifting from a fundamental growth equity investment processes to a factor- and model-based investment approach with an emphasis on risk management.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

CAIS: How Technology is Disrupting the Alternative Investment Industry

Nov 7 2017 | 5:35pm ET

If there’s one thing that alternative investment professionals can agree on, it...