Key Takeaways
- • Virtus Investment Partners (NASDAQ: VRTS) closed its acquisition of AlphaSimplex, LLC on April 1, 2023, adding a quantitative alternatives manager with $8.3 billion in assets under management as of February 28, 2023.
- • AlphaSimplex's $2.7 billion AlphaSimplex Managed Futures Strategy Fund (ASFYX) is the third-largest U.S. mutual fund in its category and carries a 5-Star Morningstar Rating as of December 31, 2022.
- • Virtus expects to complete the adoption of the U.S. funds in May 2023, with the transition of AlphaSimplex's Luxembourg-domiciled UCITS fund expected in the third quarter of 2023, subject to regulatory approval.
- • AlphaSimplex will operate as an autonomous boutique affiliate, retaining control of its investment processes, brand, and culture, according to Virtus.
Summary
Virtus Investment Partners, Inc. (NASDAQ: VRTS) completed its previously announced acquisition of AlphaSimplex, LLC, a registered investment adviser and leading manager of quantitative alternative investment solutions, according to a Business Wire release dated April 3, 2023. The transaction closed on April 1. AlphaSimplex manages $8.3 billion in assets under management as of February 28, 2023. That AUM figure includes the trading size of certain separately managed accounts and does not correspond to regulatory AUM, according to the release's footnote.
The acquisition expands Virtus's alternative investment offerings with AlphaSimplex's systematic, quantitative strategies, which are offered to both institutional and individual clients. AlphaSimplex's flagship trend-following managed futures product is the AlphaSimplex Managed Futures Strategy Fund (ASFYX), which holds $2.7 billion and is rated 5 stars by Morningstar as of December 31, 2022. The release describes it as the third-largest U.S. mutual fund in its category. The firm also manages the AlphaSimplex Global Alternatives Fund (GAFYX). Virtus expects to complete the adoption of these U.S. funds in May 2023. The transition of the Luxembourg-domiciled UCITS fund managed by AlphaSimplex is expected in the third quarter of 2023, subject to regulatory approval. Natixis Investment Managers will continue to distribute the funds until the transitions are complete.
As a boutique affiliate, AlphaSimplex will retain autonomy over its investment processes, brand, and culture, which Virtus says will ensure continuity for clients, consultants, and distribution partners. George R. Aylward, president and chief executive officer of Virtus, said AlphaSimplex "offers innovative capabilities that rely on researching and analyzing market behaviors and employing a proprietary risk management process." He added that Virtus looks forward to "supporting their continued growth." The release notes that futures and forward contracts used by the strategies carry a high degree of risk and may result in potentially unlimited losses.
The acquisition expands Virtus's alternative investment offerings with AlphaSimplex's systematic, quantitative strategies, which are offered to both institutional and individual clients. AlphaSimplex's flagship trend-following managed futures product is the AlphaSimplex Managed Futures Strategy Fund (ASFYX), which holds $2.7 billion and is rated 5 stars by Morningstar as of December 31, 2022. The release describes it as the third-largest U.S. mutual fund in its category. The firm also manages the AlphaSimplex Global Alternatives Fund (GAFYX). Virtus expects to complete the adoption of these U.S. funds in May 2023. The transition of the Luxembourg-domiciled UCITS fund managed by AlphaSimplex is expected in the third quarter of 2023, subject to regulatory approval. Natixis Investment Managers will continue to distribute the funds until the transitions are complete.
As a boutique affiliate, AlphaSimplex will retain autonomy over its investment processes, brand, and culture, which Virtus says will ensure continuity for clients, consultants, and distribution partners. George R. Aylward, president and chief executive officer of Virtus, said AlphaSimplex "offers innovative capabilities that rely on researching and analyzing market behaviors and employing a proprietary risk management process." He added that Virtus looks forward to "supporting their continued growth." The release notes that futures and forward contracts used by the strategies carry a high degree of risk and may result in potentially unlimited losses.
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