The macro unit of Brisbane-headquartered Blue Sky Alternative Investments has announced the completion of a management buy-out.
The team behind the Blue Sky Dynamic Macro Strategy purchased Blue Sky Investment Science Asset Management last month, renaming it QDRA. It will be based in Adelaide.
Dynamic Macro portfolio manager Simon Kitson said the acquisition will not affect the “crisis alpha” strategy’s structure, as the investment team, oversight committees, systems, policies and procedures remain unchanged.
The $55m fund, which has been trading since 2007, targets high-conviction, contrarian trades that can deliver positive skew, with the aim of delivering protection for investors during periods of equity market stress while avoiding the erosion of assets during recovery periods.
Blue Sky acquired Investment Science Asset Management in March 2014.
Dynamic Macro’s partnership with US-based managed futures FoHF Equinox Funds will not be impacted.
“[The] Equinox relationship is unaffected, probably stronger. They were kept informed at every stage and were very supportive,” Kitson said in an email.
In November 2017, Blue Sky Alternative Investments won a mandate from the Princeton, New Jersey-based company for Dynamic Macro, with the fund added to portfolio of strategies within the Equinox MutualHedge Futures Strategy.
Since then, Equinox has also has allocated to Blue Sky’s flagship systematic global macro strategy through the Deutsche Bank platform, dbSelect.
In March last year, US short-seller Glaucus Research Group claimed Blue Sky had overstated its size, exaggerated performance and over-valued assets.
The California-based activist accused the Australian firm of exaggerating its returns, which in turn was inflating revenue and profits at the manager. Glaucus also claimed Blue Sky was invoking a “fabricated obligation to maintain secrecy” on its investments, portfolio and performance.
Blue Sky saw its share price fall 15% as a result of the campaign , leading to the resignations of its managing director, Robert Shand, and two board members. Its shares trade at AU$0.75, declining 93% since Glaucus’ allegations were made public.
Blue Sky is Australia’s only listed diversified alternative asset manager.
Blue Sky macro unit undergoes management buy-out on AsiaHedge.