PASADENA, Calif. — Executives at First Quadrant LP say business is thriving, despite the high-profile departure last year of founder and Chairman Rob Arnott.
The firm, which offers quantitative, fundamental investment strategies, has added four institutional global tactical asset allocation and global macro accounts since the start of the year. And First Quadrant officials said they expect to pick up at least two more big ones, as well as a customized futures/options mandate, in the second quarter. Total assets under management are expected to rise to $23 billion as of June 30, from $21.3 billion as of March 31, said Curt Ketterer, chief operating officer.
These numbers reflect First Quadrant's first-quarter change in the way it accounts for assets under management; the firm is now reporting only money tied to strategies run out of Pasadena and excluding the $3.5 billion in assets run from its London office.
The brightened picture helps to gloss over a period when assets under management sank to $13.3 billion at the end of 2002, hurt by weak investment performance during the bear market. Assets had been as high as $32 billion in 1999. (First Quadrant declined to restate assets under management previous to year-end 2004 to account for the new methodology.)
The firm ended 2004 with $17.3 billion under management (excluding London). Mr. Arnott left last spring to focus on Research Affiliates LLC, Pasadena, a firm he founded in 2002. Mr. Arnott, a well-known industry figure, is editor of the Financial Analysts Journal.
Mr. Arnott left on difficult terms following a disagreement with parent Affiliated Managers Group Inc. over AMG's business practices.