#USA #Stamford #quantitative investment #LGT Capital Partners #One River

One River Asset Management's Strategic Acquisition

Introduction
In a significant move to bolster its position in the investment management sector, One River Asset Management has finalized a purchase agreement with Switzerland-based LGT Capital Partners. This acquisition focuses on LGT's Quantitative Investment Solutions (QIS) team and their robust investment strategies, marking a transformative step for One River as it aims to enhance its offerings within the systematic risk mitigation domain.

Details of the Acquisition
The acquisition, expected to conclude in mid-2026, will see One River gain not only the core team comprising eight seasoned hedge fund professionals but also the intellectual property and investment strategies developed by LGT's QIS unit. This strategic move is projected to add over $900 million in Assets Under Management (AUM) to One River’s portfolio and establish its first European footprint.

Eric Peters, CEO and CIO of One River, expressed his satisfaction: “One River is the leading systematic risk mitigation firm for institutional investors, and this acquisition advances that position on every front.” He emphasized that the incoming team complements One River’s existing capabilities and is a step forward in service enhancement.

Investment Strategies Overview
The two prominent strategies included in this acquisition are set for rebranding under One River:
1. One River Dynamic Protection: This strategy represents a systematic, multi-asset, futures-based long volatility approach. With a proven track record exceeding 11 years, it aims to provide robust risk management through diversification and strategic asset allocation.
2. One River Systematic Macro: Another multi-asset strategy, this approach has achieved nearly a decade of live performance. It allows for dynamic response to macroeconomic changes, thus positioning investors to navigate shifting market conditions effectively.

Both strategies will be managed under the leadership of Stephen Prajna, who continues in his role as Deputy CIO of Risk Mitigating Strategies at One River. The integration of these strategies aims to offer clients superior long-term compounding potential by delivering liquid, capital-efficient solutions.

New Leadership and Responsibilities
With this acquisition, One River will expand its leadership team, bringing on board three new partners:

• - Jean-François Bacmann will step in as Deputy CIO of Diversifying Strategies.
• - Pascal Spielmann assumes the role of President of One River Switzerland.
• - Simone Villa will serve as Chief Technology Officer.

Additionally, Christian Jung joins as the COO/CRO of One River Switzerland, reinforcing the firm’s operational capabilities.

Strategic Implications
The rationale behind this acquisition is multifaceted. It aims to address challenges faced in institutional portfolio construction, particularly around traditional diversification methods that are often inefficient. By integrating these new strategies within One River’s existing frameworks, the firm can enhance capital usage efficiencies and better serve client needs.

Patrick Kazley, President and Head of Solutions at One River, highlighted the strategic value of this move, stating, “This acquisition provides One River with additional thought leaders in the industry and long-established live track records in defensive systematic strategies.”

Continued Commitment from LGT Capital Partners
LGT Capital Partners, a prominent player in the alternative investment space with over $110 billion in AUM, will maintain a meaningful investment in the newly acquired strategies. This partnership ensures a continuity of focus on high-quality investment management.

Pius Fritschi, Managing Partner at LGT Capital Partners, showcased optimism regarding the future of the QIS strategies: “Partnering with One River ensures that the QIS franchise can continue to evolve within an environment built for systematic liquid alternatives.”

Conclusion
This acquisition by One River Asset Management marks a pivotal moment in its growth trajectory, promising to enhance its portfolio with proven investment strategies and a skilled team. As they gear up for a new chapter, stakeholders can anticipate innovative and effective risk mitigation solutions tailored to meet the evolving demands of institutional investors. Through this synergy, One River is poised to deliver enhanced portfolio performance and strategic advantages in an unpredictable market climate.