NEW YORK--(BUSINESS WIRE)--Schonfeld Group Holdings LLC, a family office that deploys investment and risk capital to quantitative and fundamental equity portfolio managers, today provided an update on the company's efforts to grow its multi-strategy portfolio management business.
In 2007, Schonfeld launched a transformational strategy focused on providing investment capital, operating expenses and technology infrastructure to talented investment teams engaged in Statistical Arbitrage and other Quantitatively-driven trading strategies. Commencing in 2012, Schonfeld extended its offering to Fundamental Equity/Relative Value portfolio managers. This combined effort now represents over 95% of Schonfeld's revenues and profits.
Schonfeld currently engages 35 portfolio managers having an aggregate of $7.5 billion of gross market value in geographies that include the United States, Europe and Asia-Pacific.
Over the past nine months, Schonfeld has not only continued to expand its platform through the addition of new portfolio management teams, but has furthered its commitment to its existing teams through:
- The select allocation of additional investment capital;
- Supporting the ability to raise external capital from third-party investors and co-investors;
- Supporting team entry into new asset classes and geographies; and
- The extension and expansion of agreements in terms of time horizon and capital commitment.
Multiple fundamental equity portfolio managers have successfully raised third-party capital and statistical arbitrage teams have expanded into new geographies and asset classes.
"The organizational flexibility we hold as a hybrid between a multi-strategy platform and a seeder wrapped in a family office structure allows us to adjust our strategy and model as the markets dictate, furthering our ability to grow our business and become the desired partner for great portfolio managers," said Steven Schonfeld, CEO and Chairman, Schonfeld Group. "We have empowered these teams in new ways, and in bringing them new possibilities we have engendered loyalty, sparked great word-of-mouth, and realized industry leading risk-adjusted returns over the last five years."
A prime example of this flexibility is the expansion of one of Schonfeld’s earliest successes. Quantbot, a quantitative trading team that joined Schonfeld in 2009 from Merrill Lynch, recently extended its investment management agreement with Schonfeld through 2027. As part of the partnership, Quantbot has launched an initiative to add individual mid-level to senior-level PM Strategists or Researchers and train them in running their own statistical arbitrage and other quantitative trading strategies.
Backed by industry-leading technology and the experience and commitment of a sophisticated investor in the market for more than 25 years, Schonfeld's portfolio management offering features:
- Generous Performance-Based Formulaic Payouts;
- IP Ownership and Portable Track Records;
- The opportunity to raise funds outside of Schonfeld Group;
- The opportunity for managers to co-invest in their strategies;
- Geographic flexibility; and
- 100% ownership of their management companies.
The combination of these features has attracted portfolio managers that have generated Schonfeld annual returns in excess of 20% over the past five years.
"We believe our offering marries the best characteristics of platforms like Millennium and seeders like Blackstone," said Andrew Fishman, President, Schonfeld Group. "We are pleased to have furthered our position as a must-consider firm for talented portfolio managers and believe we are in the early innings of a significant opportunity."
About Schonfeld Group Holdings LLC
Schonfeld, a family office having roots that date back to 1988, invests capital with portfolio managers and proprietary traders. Schonfeld deploys its stable, risk-tolerant capital to a multitude of investment and trading strategies which fall into three broad categories: statistical arbitrage and other quantitatively-driven strategies; fundamental equity / relative value; and proprietary trading.