State Street Global Advisors (SSgA) is set to sell its hedge fund affiliate group SSARIS to the division’s senior executives.
A spokesperson for the asset management firm confirmed that the two organizations “have decided to end their relationship” after 13 years of working together.
“This decision reflects a mutual agreement that operating independently is the best course of action for both organizations and their clients,” the spokesperson said.
According to SSARIS’ website, the Wilton, Connecticut-based firm serves as the “hedge fund and funds-of-hedge-funds investment platform for SSgA’s institutional clientele.” It also manages six hedge funds and six funds-of-hedge-funds for investors in North America, Europe, and Asia.
Furthermore, SSARIS has a hedge fund advisory service for asset owners that assists with portfolio construction and hedge fund monitoring.
A regulatory filing revealed it managed $1.4 billion as of December 31, 2013.
SSgA joined up with SSARIS in 2001, purchasing a 60% stake in the company. The parent firm revealed that the majority ownership would be sold to SSARIS’ employees.
“We will transition SSARIS’ investment responsibilities for two SSgA-branded strategies co-managed by SSARIS to our investment solutions group,” SSgA’s spokesperson said. “We are committed to meeting our clients’ needs for alternative strategies.”
As of September 30, 2014, State Street managed $2.4 trillion in assets, of which $124 billion were in alternative investments.
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