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Money Management

Guggenheim transfers ownership of quantitative bond unit to its founder

Guggenheim Partners will transfer ownership of its quantitative investment strategies unit to Marcos Lopez de Prado, a senior managing director of the firm and founder of the business.

Mr. Lopez de Prado built the QIS unit and developed the technology systems to quantitatively manage investment-grade bonds, a Guggenheim Partners news release said. The unit manages $13 billion.

Seth Lubove, a Guggenheim Partners' spokesman, said he could not provide the terms of the deal, the timing of its closing and other operational details.

Mr. Lopez de Prado could not immediately be reached for more information about his plans for managing QIS going forward.

Guggenheim said in the release that the firm and Mr. Lopez de Prado resolved "a dispute over the ownership of certain intellectual property, some of which was developed by Mr. Lopez de Prado during his time at Guggenheim."

The release said "a lawsuit briefly on file dealt with this issue and the parties have resolved their dispute amicably and mutually agreed to dismiss the suit."

Mr. Lubove said he could not comment further about the lawsuit.

"We look forward enthusiastically to working with Mr. Lopez de Prado and his colleagues as they build their new firm to make their technologies more widely available," the release said.

Mr. Lubove said he could not comment about the working relationship going forward between QIS and Guggenheim.