AlphaSimplex Group
{{Short description|Asset management firm based in Boston}}
{{Use mdy dates|date=December 2023}}
{{Infobox company
| name = AlphaSimplex Group, LLC
| logo = AlphaSimplex Group.png
| image = 200 State Street, Boston, Massachusetts.jpg
| image_caption = Headquarters at 200 State Street
| image_size =
| trading_name =
| native_name =
| former_name =
| type = Subsidiary
| traded_as =
| industry = Investment Management
| foundation = {{Start date and age|1999|}}
| founder = {{ubl
}}
| hq_location = Boston, Massachusetts, U.S.
| num_locations =
| key_people = Duncan Wilkinson (CEO)
| revenue =
| net_income =
| aum = US$10.9 billion (Q3 2022)
| equity =
| num_employees = 44 (2022)
| parent = {{ubl
|Virtus Investment Partners (2023–present)
|Natixis Investment Managers (2007–2023)
}}
| subsid =
| homepage = {{URL|www.alphasimplex.com}}
}}
AlphaSimplex Group (AlphaSimplex) is an American investment management firm based in Boston. The firm relies on quantitative analysis for its approach to investing.{{Cite news |date=September 10, 2022 |title=AlphaSimplex Quant Explains What's Behind Fund's 38% Gain: Q&A |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2022-09-10/alphasimplex-quant-explains-what-s-behind-fund-s-38-gain-q-a |access-date=November 24, 2022 |archive-date=September 10, 2022 |archive-url=https://web.archive.org/web/20220910232015/http://www.bloomberg.com/news/articles/2022-09-10/alphasimplex-quant-explains-what-s-behind-fund-s-38-gain-q-a |url-status=live }}{{Cite news |last=Gray |first=Tim |date=July 11, 2009 |title=From the Classroom to the Marketplace |language=en-US |work=The New York Times |url=https://www.nytimes.com/2009/07/12/business/mutfund/12quant.html |access-date=December 2, 2022 |issn=0362-4331 |archive-date=December 2, 2022 |archive-url=https://web.archive.org/web/20221202123727/https://www.nytimes.com/2009/07/12/business/mutfund/12quant.html |url-status=live }}{{Cite web |title=Managed Futures Massively Outperforms in 2022 |url=https://etfdb.com/managed-futures-channel/managed-futures-massively-outperforms-in-2022/ |access-date=December 2, 2022 |website=ETF Database |archive-date=December 7, 2022 |archive-url=https://web.archive.org/web/20221207193912/https://etfdb.com/managed-futures-channel/managed-futures-massively-outperforms-in-2022/ |url-status=live }}
On October 20, 2022, it was announced that Natixis Investment Managers would sell AlphaSimplex to Virtus Investment Partners.{{Cite web |date=October 20, 2022 |title=Virtus to acquire alternatives manager AlphaSimplex from Natixis |url=https://www.pionline.com/alternatives/virtus-acquire-alternatives-manager-alphasimplex-natixis |access-date=November 24, 2022 |website=Pensions & Investments |language=en |archive-date=November 24, 2022 |archive-url=https://web.archive.org/web/20221124142539/https://www.pionline.com/alternatives/virtus-acquire-alternatives-manager-alphasimplex-natixis |url-status=live }}{{Cite web |last=SCHMITT |first=WILL |date=October 21, 2022 |title=Natixis to sell $11bn alts boutique to Virtus |url=https://citywire.com/asia/news/natixis-to-sell-11bn-alts-boutique-to-virtus/a2400512 |access-date=November 24, 2022 |website=citywire.com |archive-date=November 24, 2022 |archive-url=https://web.archive.org/web/20221124142529/https://citywire.com/asia/news/natixis-to-sell-11bn-alts-boutique-to-virtus/a2400512 |url-status=live }} The acquisition completed in April 2023.{{cite web |last=Larson |first=Andrew |date=April 4, 2023 |title=Virtus Investment Partners closes on acquisition of Boston firm |url=https://www.hartfordbusiness.com/article/virtus-investment-partners-closes-on-acquisition-of-boston-firm |website=Hartford Business Journal |access-date=April 12, 2023 |archive-date=April 5, 2023 |archive-url=https://web.archive.org/web/20230405120109/https://www.hartfordbusiness.com/article/virtus-investment-partners-closes-on-acquisition-of-boston-firm |url-status=live }}
Background
AlphaSimplex was founded in 1999 by Andrew Lo.{{Cite news |date=September 13, 2007 |title=Natixis to buy firm managed by MIT's Andrew Lo |language=en |work=Reuters |url=https://www.reuters.com/article/natixis-alphasimplex-idUSN1338056220070913 |access-date=November 24, 2022 |archive-date=November 24, 2022 |archive-url=https://web.archive.org/web/20221124140906/https://www.reuters.com/article/natixis-alphasimplex-idUSN1338056220070913 |url-status=live }}{{Cite web |last=Fisher |first=Daniel |title=Managed-Futures Fund Offers Panic Management In A Crisis |url=https://www.forbes.com/sites/danielfisher/2016/09/14/managed-futures-fund-offers-panic-management-in-a-crisis/ |access-date=December 2, 2022 |website=Forbes |language=en |archive-date=December 2, 2022 |archive-url=https://web.archive.org/web/20221202133352/https://www.forbes.com/sites/danielfisher/2016/09/14/managed-futures-fund-offers-panic-management-in-a-crisis/ |url-status=live }} Lo is a professor of Finance at MIT Sloan School of Management.{{Cite news |last=Gray |first=Tim |date=July 11, 2009 |title=From the Classroom to the Marketplace |language=en-US |work=The New York Times |url=https://www.nytimes.com/2009/07/12/business/mutfund/12quant.html |access-date=December 2, 2022 |issn=0362-4331 |archive-date=December 2, 2022 |archive-url=https://web.archive.org/web/20221202123727/https://www.nytimes.com/2009/07/12/business/mutfund/12quant.html |url-status=live }}{{Cite web |date=July 9, 2009 |title=Ready for anything: Face to Face with Andrew Lo |url=https://www.pionline.com/article/20090713/PRINT/307139990/ready-for-anything-face-to-face-with-andrew-lo |access-date=December 2, 2022 |website=Pensions & Investments |language=en |archive-date=December 2, 2022 |archive-url=https://web.archive.org/web/20221202135727/https://www.pionline.com/article/20090713/PRINT/307139990/ready-for-anything-face-to-face-with-andrew-lo |url-status=live }} He was chairman and Chief Investment Strategist of the firm until 2018 when he transitioned to his current role as chairman emeritus and Senior advisor.{{Cite web |date=September 13, 2007 |title=Natixis buys firm founded by MIT professor Lo |url=https://www.pionline.com/article/20070913/ONLINE/70913020/natixis-buys-firm-founded-by-mit-professor-lo |access-date=November 24, 2022 |website=Pensions & Investments |language=en |archive-date=November 24, 2022 |archive-url=https://web.archive.org/web/20221124160808/https://www.pionline.com/article/20070913/ONLINE/70913020/natixis-buys-firm-founded-by-mit-professor-lo |url-status=live }}{{Cite web |title=Supplement dated November 7, 2017 to the Currently Effective Summary Prospectus, Prospectus and Statement of Additional Information |url=https://www.sec.gov/Archives/edgar/data/814679/000006759017001202/astsup11717.htm |access-date=November 24, 2022 |website=www.sec.gov |archive-date=November 24, 2022 |archive-url=https://web.archive.org/web/20221124142529/https://www.sec.gov/Archives/edgar/data/814679/000006759017001202/astsup11717.htm |url-status=live }}
In 2007, Natixis Investment Managers acquired AlphaSimplex. In the same year, AlphaSimplex and Credit Suisse launched the first 130–30 fund index.{{Cite web |date=October 3, 2007 |title=Credit Suisse and AlphaSimplex launch first 130/30 index {{!}} Hedgeweek |url=http://www.hedgeweek.com/2007/10/03/credit-suisse-and-alphasimplex-launch-first-13030-index |access-date=November 24, 2022 |website=www.hedgeweek.com |language=en |archive-date=March 16, 2024 |archive-url=https://web.archive.org/web/20240316033815/https://www.hedgeweek.com/credit-suisse-and-alphasimplex-launch-first-13030-index/ |url-status=live }}
The firm's most notable funds are its Managed Futures Strategy Fund launched in 2010 and its Global Alternatives Fund launched in 2008.{{Cite web |title=AlphaSimplex's Flat Fee Flagship Strategy |url=https://thehedgefundjournal.com/alphasimplexs-flat-fee-flagship-strategy/ |access-date=December 2, 2022 |website=thehedgefundjournal.com |language=en-GB |archive-date=December 2, 2022 |archive-url=https://web.archive.org/web/20221202130030/https://thehedgefundjournal.com/alphasimplexs-flat-fee-flagship-strategy/ |url-status=live }} Its Managed Futures Strategy Fund uses a quantitative approach to trend following. Its Global Alternatives Fund is a mutual fund that provides the strategies and properties of hedge funds to average investors who otherwise would not be able to invest in hedge funds due their strict investor requirements. The firm also had a Liquid alternative fund called Diversifying Strategies Fund that was launched in 2009 but closed in 2013 due to poor returns.{{Cite web |last=Zweig |first=Jason |title=When a 'Liquid-Alt' Fund Loses Steam |url=http://blogs.wsj.com/moneybeat/2014/06/20/when-a-liquid-alt-fund-loses-steam/ |access-date=December 2, 2022 |website=WSJ |language=en-US |archive-date=January 17, 2021 |archive-url=https://web.archive.org/web/20210117195740/https://blogs.wsj.com/moneybeat/2014/06/20/when-a-liquid-alt-fund-loses-steam/ |url-status=live }}
The firm is registered with the Commodity Futures Trading Commission as a commodity pool operator (CPO) and commodity trading advisor (CTA).{{Cite web |title=BASIC {{!}} NFA |url=https://www.nfa.futures.org/BASICNET/basic-activity-status.aspx?nfaid=LXXyP6SQsHE= |access-date=December 2, 2022 |website=www.nfa.futures.org |archive-date=December 2, 2022 |archive-url=https://web.archive.org/web/20221202130031/https://www.nfa.futures.org/BASICNET/basic-activity-status.aspx?nfaid=LXXyP6SQsHE= |url-status=live }} Since 2010, flat fee trend following has been its flagship CTA strategy.
From 2022 to 2023, AlphaSimplex made a two-year short bet against US Bonds. Its public mutual fund had a 36% return in 2022 due to the bond market rout that year but had a 10% loss in 2023 when the bond market rebounded towards end of the year.{{Cite news |last=McCormick |first=Liz Capo |date=2024-01-04 |title=AlphaSimplex Exits Short Bet Against US Bonds After 'Epic' Market Shift |url=https://www.bloomberg.com/news/articles/2024-01-04/alphasimplex-exits-short-bond-bet-after-epic-shift-in-market |access-date=2024-02-11 |work=Bloomberg.com |language=en |archive-date=January 4, 2024 |archive-url=https://web.archive.org/web/20240104163105/https://www.bloomberg.com/news/articles/2024-01-04/alphasimplex-exits-short-bond-bet-after-epic-shift-in-market |url-status=live }}
References
{{Reflist}}
External links
- {{Official website| https://www.alphasimplex.com}}
{{hedge funds}}
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Category:1989 establishments in Massachusetts
Category:Companies based in Boston
Category:Financial services companies established in 1999