Swiss private bank Edmond de Rothschild has acquired a minority stake in independent asset management firm ERAAM.
Edmond de Rothschild sees ERAAM, a specialist in quantitative management, as a key partner in expanding its own investment solutions incorporating quantitative techniques.
“With a research and management team of around 10 experts, ERAAM specialises in seeking absolute performance through factor management using a proprietary, disciplined and transparent approach,” a statement from the Swiss bank has said.
ERAAM has been a prominent player in quant fund management since the early 2000s.
Cyril Julliard, founding chairman of ERAAM, states that “the rise in data processing and calculation capacities is triggering a revolution in the world of asset management.
“The typical investor bias, risk aversion, leverage constraints and sheep-like behaviour that underlie the familiar alpha of traditional asset management can now be exploited on an industrial level ie. more reliably and cheaply.”
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By GlobalDataEdmond de Rothschild will provide ERAAM with commercial and management expertise to help accelerate growth, the two firms combining to produce a joint R&D programme.
“Today, the ability to understand and manage data carries a genuine competitive advantage and we firmly believe in the synergies between conviction-based management and quantitative management,” Edmond de Rothschild CEO of asset management, Christophe Caspar states.
This news comes shortly after Edmond de Rothschild unveiled its environmentally-conscious private equity fund in partnership with Pearl Advisory.
Edmond de Rothschild announced its decision to go private in March of this year in a deal reportedly worth CHF 99 million.