ClariVest Asset Management will be launched in the weeks ahead by the systematic equity team that bolted Nicholas-Applegate Capital Management March 9, according to an e-mail signed by Stacey Nutt that was obtained by P&I Daily. Mr. Nutt was leader of the team that managed "more than $5 billion" across a range of domestic and international products for Nicholas-Applegate.
The firm will be led by Mr. Nutt, who was also leader and co-lead portfolio manager, respectively, of the team's small-cap and smid-cap strategies, according to the e-mail. Other ClariVest team members are David Pavan, who led the team's large-cap strategies; Todd Wolter, lead and co-lead manager, respectively, of the team's midcap and smid-cap strategies; David Vaughn, who led the team's international and global strategies; portfolio manager Frank Feng; and analyst Aerus Tran.
Private equity firm Lovell Minnick Partners will invest "more than $10 million to help us develop ClariVest's business," the e-mail said. Jim Minnick, a founder, said his firm is making an equity investment in the business, which he described as "a strong, talented, motivated" team. In addition, Stellate Partners, a provider of marketing and operational assistance to investment managers, will provide advisory services, along with John Mathai and Rob Mathai, director of marketing and managing partner, respectively, of Charlotte Capital. Neither Paul Greenwood, Stellate principal, nor Rob Mathai were immediately available for comment.
According to a statement from Nicholas-Applegate on Friday, the quantitative trading models used by its systematic group are proprietary, and the departures shouldn't affect the firm's ability to manage those portfolios. By contrast, in Monday's e-mail, Mr. Nutt stressed "we don't use black boxes and firmly believe that our investment approach, blending bottom-up stock selection with economically intuitive criteria and a robust portfolio construction method," will set the stage for consistent outperformance. Mr. Nutt, in a telephone interview, said ClariVest, while not aiming to strip away clients from Nicholas-Applegate, will invest money for any client interesting in extending mandates to the new firm.
Nicholas-Applegate spokeswoman Susan Hunter wasn't immediately available to comment.