Marshall Wace

Marshall Wace LLP is a hedge fund based in London, founded by Paul Marshall and Ian Wace in 1997.[6] Marshall serves as chairman and chief investment officer, and Wace as chief executive officer & chief risk officer.[7] The company is one of the world's biggest hedge fund managers.[8]

Marshall Wace
TypeLLP
IndustryFinancial services
Founded1997 (1997)[1]
Founders
HeadquartersLondon, United Kingdom
ProductsInvestment products
AUMUS$ 43.8 billion
(as of June 2020)
Websitewww.mwam.com

Overview

Prior to starting the fund, Paul Marshall was Head of European Equities at Mercury Asset Management, whilst Ian Wace was Head of Equities Trading at Deutsche Bank.[9] In 1997, Marshall and Wace launched Marshall Wace; they were managing $50 million; $25 million from George Soros and $25 million sourced via family and friends.[10] The firm manages more than $48 billion as of 2020[11] and operates from fund management offices in London, New York[12] and Hong Kong.[1] The head office in London is on Sloane Street.[7]

The company is a founding member of the Hedge Fund Standards Board (HFSB)[13] and is a member of the Alternative Investment Management Association (AIMA). In August 2014, Marshall Wace made $36 million from going short on the collapse of the Portuguese bank Banco Espirito Santo.[14] In 2015 Kohlberg Kravis Roberts agreed to buy a 24.9 percent stake in Marshall Wace.[1] In 2020, Marshall Wace announced its plans to raise $1 billion for a new green hedge fund which will depend on the environmental and ethical attributes for trading stocks.[15]

Investment Approach

Marshall Wace manages a number of fundamental long-short equity funds. The investment process for each uses fundamental analysis that seeks to identify companies that are substantially mispriced on an absolute or relative basis. Managers have the ability to shift from value to growth, from small to medium to large-capitalisation stocks, and switch from a net long position to a net short position. Managers can also use futures and options to hedge.[16]

Products

In addition to its fundamental long/short equity strategies, Marshall Wace runs a proprietary alpha capture system called TOPS (Trade Optimised Portfolio System), which polls the investment ideas of equity sell-side practitioners (generalists, sector specialists, strategists, and economists) around the world and uses algorithms to analyse and optimise this information into liquid equity portfolios.[17] Most of Marshall Wace's investors are major institutions. However, a number of its funds are UCITS-compliant vehicles.[18]

Assets under management
YearAUM in Bil.
USD$
1997[10].05
2006[19]4.3
2007[20]11
2008[21]15
2009[22]6.3
2010[23]6
2014[24] 18
2015[1]22
2016[5]25
2017[10]29
2019[25]39
2020[26] 43.8

References
  1. Stevenson, Alexandra; Bray, Chad (9 September 2015). "K.K.R. Takes 24.9% Stake in Hedge Fund Marshall Wace". New York Times (DealBook). New York, N.Y., United States. The New York Times Company. p. B5. Retrieved 17 May 2019.
  2. "British Minister Faces City's Wrath After Speech". New York Times (DealBook). United States. The New York Times Company. 23 September 2010. Retrieved 17 May 2019.
  3. Stevenson, Alexandra; Goldstein, Matthew (16 July 2014). "Some Top Money Managers Push for Fed to Start Raising Interest Rates". New York Times (DealBook). United States. The New York Times Company. Retrieved 17 May 2019.
  4. Werdigier, Julia (29 April 2013). "Financiers' Charity Gala Goes the Way of Canapés". New York Times (DealBook). United States. The New York Times Company. Retrieved 17 May 2019.
  5. Fortado, Lindsay (9 December 2016). "Marshall Wace partners profit as performance fees jump". Financial Times. Nikkei. Retrieved 17 May 2019.
  6. Metcalf, Tom; Perlberg, Heather (16 April 2019). "KKR Strikes Hedge Fund Gold with British Millionaire Pair". Bloomberg News. Retrieved 10 June 2020.
  7. "Marshall Wace LLP". Bloomberg. Retrieved 10 June 2020.
  8. Fletcher, Laurence (2020-09-25). "Hedge fund Marshall Wace to open Singapore office". www.ft.com. Retrieved 2020-10-08.
  9. "Company Overview of Marshall Wace LLP". Bloomberg. April 24, 2019.
  10. Fortado, Lindsay (23 April 2017). "Sir Paul Marshall, co-founder Marshall Wace, backing Brexit". Financial Times. Nikkei. Retrieved 17 May 2019.
  11. Fletcher, Laurence (2020-09-25). "Hedge fund Marshall Wace to open Singapore office". www.ft.com. Retrieved 2020-10-08.
  12. "Chiki Gupta, Brandon Brahm". New York Times. United States. The New York Times Company. 16 July 2017. p. ST12. Retrieved 17 May 2019.
  13. "Hedge Fund Standards Board - Annual Report 2009" (PDF). Hedge Fund Standards Board. Retrieved 10 June 2020.
  14. "Espirito Santo Still Haunting Portugal ETF". Yahoo! Finance. 6 August 2014. Retrieved 10 June 2020.
  15. "Marshall Wace targets $1bn for new green hedge fund". Financial Times.
  16. "About". Marshall Wace. Retrieved 10 June 2020.
  17. Morgensonjuly, Gretchen (15 July 2012). "Surveys Give Big Investors an Early View From Analysts". New York Times (DealBook). United States. The New York Times Company. p. A1. Retrieved 17 May 2019.
  18. Ahmed, Azam (15 December 2010). "Paulson's New Highly Regulated Hedge Fund". New York Times (DealBook). United States. The New York Times Company. Retrieved 17 May 2019.
  19. Mackintosh, James (13 November 2006). "Marshall Wace aims for €1.5bn listing" (Financials). Financial Times. Nikkei. Retrieved 18 May 2019.
  20. Helen, Thomas (14 January 2007). "Marshall Wace co-founder defends methodology" (Alphaville). Financial Times. Nikkei. Retrieved 17 May 2019.
  21. Mackintosh, James (9 March 2008). "Marshall Wace raises €2bn for new fund" (Financials). London: Financial Times. Nikkei. Retrieved 17 May 2019.
  22. Mackintosh, James (17 March 2009). "GLG Partners loses top spot in chart" (Financials Services). Financial Times. Nikkei. Retrieved 17 May 2019.
  23. Jones, Sam (15 August 2010). "Marshall Wace investors poised to wind up listed fund". Financial Times. Nikkei. Retrieved 17 May 2019.
  24. Agnew, Harriet; Alloway, Tracy (25 April 2014). "Marshall Wace buys controlling stake in Eaglewood Capital". New York, N.Y., United States: Financial Times. Nikkei. Retrieved 17 May 2019.
  25. Fletcher, Laurence (27 February 2019). "Hedge fund Marshall Wace hits jackpot with bets on struggling trio" (Financial Services). London: Financial Times. Nikkei. Retrieved 18 May 2019.
  26. Carpenter, Scott. "Hedge Fund Marshall Wace Will Bet On ESG Stocks With New $1 Billion Fund". Forbes. Retrieved 2020-11-24.

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