Key Takeaways
- • LV Distribution, a third-party asset management distributor, has partnered with Capital Fund Management (CFM), a Paris-based quantitative investment firm managing approximately $14 billion in assets as of April 1, 2024.
- • The partnership grants Registered Investment Advisors (RIAs) and Family Offices direct access to CFM's quantitative strategies, which historically deliver low or negative correlation with both bonds and equities, enabling genuine portfolio diversification.
- • CFM, founded in 1991, applies academic principles to financial markets using proprietary IT infrastructure; the firm is recognized for research-driven innovation and generating investment returns independent of traditional market performance.
- • The collaboration addresses growing institutional demand for decorrelated assets and alternative diversification strategies in an environment where traditional equity-bond correlations have become less reliable.
- • Edward Soltys (Head of LV Distribution) and Oliver Schupp (CFM Head of Americas and Co-Head of Asia-Pacific) jointly championed the partnership as alignment between two firms committed to excellence and cutting-edge investment innovation.
Summary
LV Distribution, a subsidiary of Larrain Vial specializing in third-party asset management distribution, announced a strategic partnership with Capital Fund Management (CFM) on April 23, 2024. This collaboration represents a significant expansion of LV Distribution's platform, combining CFM's award-winning quantitative investment capabilities with LV Distribution's distribution infrastructure to serve the RIA and family office segments.
CFM brings substantial institutional credentials to the partnership. Founded in Paris in 1991, the firm manages approximately $14 billion in assets and ranks among Europe's leading quantitative investment managers. CFM's investment approach is grounded in academic research and applies quantitative methodologies to global financial markets, supported by state-of-the-art technology infrastructure. A defining characteristic of CFM's strategies is their historical delivery of low or negative correlation with both equity and fixed-income markets, a critical attribute for institutional investors seeking genuine portfolio diversification independent of traditional asset class performance.
The timing of this partnership aligns with heightened institutional appetite for decorrelated investment strategies. As Edward Soltys, Head of LV Distribution, stated: "Both LV Distribution and CFM share a commitment to excellence and innovation, and this collaboration exemplifies LV Distribution's commitment to offering our clients access to cutting-edge investment strategies." Oliver Schupp, CFM's Head of Americas and Co-Head of Asia-Pacific, emphasized that "our focus has always been on research-driven innovation and delivering superior quantitative strategies," underscoring CFM's core institutional positioning.
For RIAs and family offices, the partnership facilitates access to institutional-grade quantitative strategies previously concentrated among larger asset managers. The emphasis on decorrelation and independent market returns positions CFM's strategies as portfolio complements in diversified allocations, particularly relevant for sophisticated investors managing multi-asset portfolios where traditional diversification benefits have diminished.
CFM brings substantial institutional credentials to the partnership. Founded in Paris in 1991, the firm manages approximately $14 billion in assets and ranks among Europe's leading quantitative investment managers. CFM's investment approach is grounded in academic research and applies quantitative methodologies to global financial markets, supported by state-of-the-art technology infrastructure. A defining characteristic of CFM's strategies is their historical delivery of low or negative correlation with both equity and fixed-income markets, a critical attribute for institutional investors seeking genuine portfolio diversification independent of traditional asset class performance.
The timing of this partnership aligns with heightened institutional appetite for decorrelated investment strategies. As Edward Soltys, Head of LV Distribution, stated: "Both LV Distribution and CFM share a commitment to excellence and innovation, and this collaboration exemplifies LV Distribution's commitment to offering our clients access to cutting-edge investment strategies." Oliver Schupp, CFM's Head of Americas and Co-Head of Asia-Pacific, emphasized that "our focus has always been on research-driven innovation and delivering superior quantitative strategies," underscoring CFM's core institutional positioning.
For RIAs and family offices, the partnership facilitates access to institutional-grade quantitative strategies previously concentrated among larger asset managers. The emphasis on decorrelation and independent market returns positions CFM's strategies as portfolio complements in diversified allocations, particularly relevant for sophisticated investors managing multi-asset portfolios where traditional diversification benefits have diminished.
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