BRC Investment Management, run by the former U.S. equity investment team at Duff & Phelps Investment Management, opened for business today, said John Riddle, managing principal and CIO of the new firm. The employee-owned operation will run U.S. large-cap, midcap and small-cap equity separate accounts for institutional and high-net-worth investors. The firm has between $130 million and $140 million in assets under management from former Duff & Phelps clients; "so far, about 95% of our (equity) clients have made the transition," Mr. Riddle said. BRC, which stands for "Bounded Rationality Concepts," incorporates some tenets of behavioral economics in its strategies. The firm also plans to introduce alternative risk management products later this year.
Joining Mr. Riddle as equity principals at BRC are former Duff & Phelps employees Mark Jaeger, who is director of quantitative equity; Sharon Ward, director of fundamental equity; and David DuRie, director of business development and client service.