Wednesday, December 01, 2004
AMG/AQR Investment - Truncated PR
AMG Announces Investment in AQR Capital Management
2004-11-22 08:16 ET - News Release
BOSTON -- (Business Wire) -- Nov. 22, 2004
Affiliated Managers Group, Inc. (NYSE: AMG), an asset
management company, and AQR Capital Management ("AQR" or the
"Company"), announced today that AMG has acquired an equity interest
in AQR's business. AQR's management team continues to hold the
remaining equity in the Company, and consistent with AMG's partnership
approach, will retain operating autonomy to manage the business.
AQR is a leading quantitative investment management firm and hedge
fund manager, with approximately $12 billion in assets under
management, over $6.5 billion of which is in hedge fund products.
Based in Greenwich, Connecticut, AQR offers quantitatively managed
hedge funds and long-only international equity products provided
through collective investment vehicles and separate accounts for more
than 500 institutional and high net worth clients. The Company's
products seek absolute return objectives by employing all or a subset
of its seventeen distinct investment strategies, while offering low
correlation to traditional investment products and to one another,
providing significant diversification and risk management.
AQR was founded in 1998 by a team of senior investment
professionals led by Clifford S. Asness, David G. Kabiller, Robert J.
Krail, and John M. Liew, and today includes a talented group of more
than 70 employees, including 30 investment professionals. Mr. Asness,
Chief Executive Officer of AQR, formerly led Goldman Sachs Asset
Management's quantitative research group, and has worked closely with
the three other founders of AQR for over 10 years. AQR seeks to
produce high risk-adjusted returns combined with preservation of
capital through the application of multiple quantitative investment
strategies based on a combination of value and momentum factors
applied across a large variety of liquid asset classes. Investment
decisions are made and executed through integrated research, portfolio
management and trading teams that utilize a proprietary model to
dynamically measure portfolio risk and facilitate changes. In
addition, Mr. Asness and other senior members of AQR's management are
well-known for their published research in the field of investment
theory and financial markets.
"We are very pleased to have invested in AQR, which is among the
leaders in quantitative investing with a deep and talented management
team," said William J. Nutt, AMG's Chairman and Chief Executive
Officer. "The Company's disciplined application of AQR's proprietary
quantitative asset allocation and stock selection models has produced
excellent results for its clients. In addition, AQR's management team
has generated exceptional growth for the Company through investment
performance and net client cash flows, with compound annual growth of
approximately 57% in assets under management since inception in 1998."
"AQR is among the largest and most highly regarded quantitative
managers of both hedge fund and long-only products, with a broad and
diverse set of products and an excellent long-term performance
record," stated Sean M. Healey, AMG's President and Chief Operating
Officer. "Our partnership with AQR increases and diversifies AMG's
participation in the alternative market with an investment in a proven
high quality quantitative and research-driven investment manager with
a premier group of alternative investment products. As important, we
are impressed with AQR's management and their commitment to research
in financial markets and investment theory, as well as to continuing
to build their business through superior investment performance and
client service. We believe that this investment, which combines AMG's
approach to providing operating autonomy for our new partners at AQR
through a revenue sharing arrangement, with structured participation
by AMG in AQR's revenues from both management and incentive fees, is
an attractive partnership model for alternative firms which seek to
continue to grow and institutionalize their business over the
long-term, while retaining the lion's share of the firm's economic
upside."
"We are very excited about our new relationship with AMG because
it provides a degree of liquidity and diversification for AQR's
partners in a structure and with a partner in AMG which benefit our
clients and our business," stated Mr. Asness. "We were attracted by
AMG's partnership approach, which provides for continued autonomy in
managing AQR, as well as by their reputation as a supportive partner.
AQR's management will continue to be strongly aligned with the
interests of our clients, by retaining a majority of the equity of our
business, and by investing a majority of the proceeds from the
transaction in AQR products. We look forward to continuing to serve
our clients by offering them the same high quality investment products
and excellent client service we have since our inception."
In addition to retaining a majority equity position, AQR's four
founding principals, Messrs. Asness, Kabiller, Krail, and Liew, have
signed long-term employment agreements with the Company, and will
invest a significant portion of the proceeds from the transaction in
AQR products. The Company's management, investment philosophy and
process will remain unchanged. The terms of the transaction were not
disclosed.
AMG is an asset management company with equity investments in a
diverse group of mid-sized investment management firms. AMG's strategy
is to generate growth through the internal growth of its existing
Affiliates, as well as through investments in new Affiliates. AMG's
innovative transaction structure allows individual members of each
Affiliate's management team to retain or receive significant direct
equity ownership in their firm while maintaining operating autonomy.
In addition, AMG provides centralized assistance to its Affiliates in
strategic matters, marketing, distribution, product development and
operations. Pro forma for its investments in AQR and TimesSquare
Capital Management, LLC, and its pending acquisition of the Fremont
Funds, AMG's affiliated investment management firms managed
approximately $121 billion in assets at September 30, 2004.
2004-11-22 08:16 ET - News Release
BOSTON -- (Business Wire) -- Nov. 22, 2004
Affiliated Managers Group, Inc. (NYSE: AMG), an asset
management company, and AQR Capital Management ("AQR" or the
"Company"), announced today that AMG has acquired an equity interest
in AQR's business. AQR's management team continues to hold the
remaining equity in the Company, and consistent with AMG's partnership
approach, will retain operating autonomy to manage the business.
AQR is a leading quantitative investment management firm and hedge
fund manager, with approximately $12 billion in assets under
management, over $6.5 billion of which is in hedge fund products.
Based in Greenwich, Connecticut, AQR offers quantitatively managed
hedge funds and long-only international equity products provided
through collective investment vehicles and separate accounts for more
than 500 institutional and high net worth clients. The Company's
products seek absolute return objectives by employing all or a subset
of its seventeen distinct investment strategies, while offering low
correlation to traditional investment products and to one another,
providing significant diversification and risk management.
AQR was founded in 1998 by a team of senior investment
professionals led by Clifford S. Asness, David G. Kabiller, Robert J.
Krail, and John M. Liew, and today includes a talented group of more
than 70 employees, including 30 investment professionals. Mr. Asness,
Chief Executive Officer of AQR, formerly led Goldman Sachs Asset
Management's quantitative research group, and has worked closely with
the three other founders of AQR for over 10 years. AQR seeks to
produce high risk-adjusted returns combined with preservation of
capital through the application of multiple quantitative investment
strategies based on a combination of value and momentum factors
applied across a large variety of liquid asset classes. Investment
decisions are made and executed through integrated research, portfolio
management and trading teams that utilize a proprietary model to
dynamically measure portfolio risk and facilitate changes. In
addition, Mr. Asness and other senior members of AQR's management are
well-known for their published research in the field of investment
theory and financial markets.
"We are very pleased to have invested in AQR, which is among the
leaders in quantitative investing with a deep and talented management
team," said William J. Nutt, AMG's Chairman and Chief Executive
Officer. "The Company's disciplined application of AQR's proprietary
quantitative asset allocation and stock selection models has produced
excellent results for its clients. In addition, AQR's management team
has generated exceptional growth for the Company through investment
performance and net client cash flows, with compound annual growth of
approximately 57% in assets under management since inception in 1998."
"AQR is among the largest and most highly regarded quantitative
managers of both hedge fund and long-only products, with a broad and
diverse set of products and an excellent long-term performance
record," stated Sean M. Healey, AMG's President and Chief Operating
Officer. "Our partnership with AQR increases and diversifies AMG's
participation in the alternative market with an investment in a proven
high quality quantitative and research-driven investment manager with
a premier group of alternative investment products. As important, we
are impressed with AQR's management and their commitment to research
in financial markets and investment theory, as well as to continuing
to build their business through superior investment performance and
client service. We believe that this investment, which combines AMG's
approach to providing operating autonomy for our new partners at AQR
through a revenue sharing arrangement, with structured participation
by AMG in AQR's revenues from both management and incentive fees, is
an attractive partnership model for alternative firms which seek to
continue to grow and institutionalize their business over the
long-term, while retaining the lion's share of the firm's economic
upside."
"We are very excited about our new relationship with AMG because
it provides a degree of liquidity and diversification for AQR's
partners in a structure and with a partner in AMG which benefit our
clients and our business," stated Mr. Asness. "We were attracted by
AMG's partnership approach, which provides for continued autonomy in
managing AQR, as well as by their reputation as a supportive partner.
AQR's management will continue to be strongly aligned with the
interests of our clients, by retaining a majority of the equity of our
business, and by investing a majority of the proceeds from the
transaction in AQR products. We look forward to continuing to serve
our clients by offering them the same high quality investment products
and excellent client service we have since our inception."
In addition to retaining a majority equity position, AQR's four
founding principals, Messrs. Asness, Kabiller, Krail, and Liew, have
signed long-term employment agreements with the Company, and will
invest a significant portion of the proceeds from the transaction in
AQR products. The Company's management, investment philosophy and
process will remain unchanged. The terms of the transaction were not
disclosed.
AMG is an asset management company with equity investments in a
diverse group of mid-sized investment management firms. AMG's strategy
is to generate growth through the internal growth of its existing
Affiliates, as well as through investments in new Affiliates. AMG's
innovative transaction structure allows individual members of each
Affiliate's management team to retain or receive significant direct
equity ownership in their firm while maintaining operating autonomy.
In addition, AMG provides centralized assistance to its Affiliates in
strategic matters, marketing, distribution, product development and
operations. Pro forma for its investments in AQR and TimesSquare
Capital Management, LLC, and its pending acquisition of the Fremont
Funds, AMG's affiliated investment management firms managed
approximately $121 billion in assets at September 30, 2004.
# posted by Tom @ 1:15 PM 
