Although the firm is the nation's third-largest money manager and its mutual funds are household names, Fidelity is a virtual unknown in portable alpha. The firms that have made names for themselves in that strategy include Barclays Global Investors, San Francisco; Bridgewater Associates, Westport, Conn.; Goldman Sachs Asset Management, New York; and AQR Capital Management LLC, New York.
Pyramis, opened in July, oversees $70 billion in domestic and international equities for Fidelity's institutional clients. Now, executives want to add cutting-edge strategies such as portable alpha and liability-driven portfolios to the mix, said Jeffrey B. Saef, its top product development officer.
"The goal at Pyramis is to serve clients of Fidelity. The second objective is to see what strategies institutions are demanding from money managers that aren't being well served by money managers," said Mr. Saef.