QS Investors, formerly the quantitative equity team at Deutsche Asset Management, opened its doors Wednesday as an employee-owned boutique.
The firm is one of two teams DeAM executives said in January they would help set up as independent boutiques as part of DeAM's broader strategy of focusing on institutional global fixed-income and liquidity management. The other team announced its launch Monday as Global Thematic Partners.
Janet Campagna, formerly a managing director and global head of quantitative strategies at DeAM, is CEO of QS Investors; James Norman, formerly a managing director and head of qualitative alpha selection research for quantitative strategies, will serve as president; Rosemary Macedo, formerly head of active quantitative equity research, chief investment officer; and Robert Wang, formerly head of quantitative strategies portfolio management for DB Advisors, head of portfolio management.
Among outside hires, Marco Veissid was named head of institutional services at QS Investors. He was head of institutional relationship management at Davis Advisors, and previously worked for DeAM. Russell O. Wiese, chief marketing officer with Davis Advisors, couldn't immediately be reached for comment.
In a telephone interview, Mr. Norman said QS Investors is starting with $11 billion in assets under management, and another $70 billion in assets under advisement.
Mr. Norman said his firm's “risk budget approach” to portfolio construction — with one part of the portfolio focused on quantitative investment techniques and the other focused on more discretionary, qualitative signals — offers diversification benefits that have allowed the team to sidestep the backlash a number of pure quant firms have faced in recent years.
He said the new firm is 100% employee owned, with equity widely distributed among its more than 40 employees.