NEW YORK - Ryan Labs Inc. has brought in new talent to lead its effort to expand its discretionary money management activities.
The firm has established an alliance with Douglas A. Love, president of Devonshire Capital Management, who is joining the firm as a managing director, charged with overseeing the firm's investment management and carrying its message to new clients. The New York-based fixed-income research and management shop - which concentrates on highly structured, research-based fixed-income products using only government securities - is seeking to grow its asset management operations, including developing overseas.
Mr. Love will direct Ryan's asset management division, which currently has approximately $250 million in discretionary assets. Ryan Labs also has $7.4 billion in advisory relationships. The division was previously directed by Mark Altemus, who is on an extended medical leave.
Mr. Love said he was first drawn to Ryan Labs after reading a research piece on interest rates by Ronald L. Ryan, president. When the two met, they developed the idea for expanding Ryan Labs' money management activities.
The meeting came at an opportune time for the 7-year-old firm, said Mr. Ryan. In September, Ryan Labs will have five years of live performance numbers.
"It all added up to an opportunity to build a substantial asset management firm," said Mr. Love. On the other hand, Mr. Love says he didn't want to leave Devonshire's staff and clients in a lurch, so he plans to divide his time between Ryan Labs and Devonshire. He plans to cut back his involvement with Devonshire, which manages non-traditional investments for wealthy individuals, remaining as chief investment officer of the firm, but turning over his management responsibilities to his partner, Andrew P. Kerr.
Mr. Love "became a godsend," said Mr. Ryan. He noted Mr. Love has experience as an analyst, consultant and money manager, all of which will make him valuable to the firm. His previous positions include vice president at BEA Associates, managing director at Matrix Capital Management and chairman of Buck Pension Funds Services Inc.
On the long term, the firm wants to enter the foreign debt markets, offer long and short positions using repurchase agreements and offer futures and options products, said Mr. Love. The Ryan Labs approach of using only government securities could translate well in developed markets such as Germany, England and France, Mr. Love said.
An international bond product is "in the blueprints," said Mr. Ryan. He added Ryan Labs is in talks with a large foreign financial institution regarding index and asset management developments. He wouldn't identify the potential partner.
Ryan offers a low-risk, low-cost core product aimed at achieving the highest possible return for the lowest cost and risk, he said.
Ryan Labs tries to set itself apart from other fixed-income managers by behaving more like a stock manager, providing frequent reports to clients. The firm's experience in creating indexes - it now offers 800, most of them customized to the clients' liabilities - allows it to provide performance reports and benchmark comparisons on a daily basis.
The firm's high-technology interests have also extended to a new World Wide Web site, which has information for consultants and sponsors, including live marketing materials. The address is http//www.ryanlabs.com.