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Credit Suisse to spin out 1 billion USD quant hedge fund

First Published 10th August 2017

Quantitative and Systematic Asset Management (QSAM), a hedge fund owned by the asset management arm of Credit Suisse, is set to become independent. A management buyout, led by QSAM head and Credit Suisse alumnus Pierre-Yves Morlat, is expected to close in the fourth quarter with Credit Suisse selling an undisclosed majority stake.

QSAM manages Qube Fund, a high-profile quant equity fund that launched last October with around 800 million USD in funding and now runs around 1 billion USD. The fund has its roots in Credit Suisse's Systematic Market Making Group (SMG), a "global quantitative and systematic trading group" focused on "market making and high-turnover strategies", according to Brian Chin, CEO of Global Markets at the bank. SMG was originally part of Credit Suisse itself before being moved to the asset management arm.

Nick Branca, who co-headed SMG with Morlat, runs the QT Fund, another quant equity fund, which began trading in February 2017 and will remain part of Credit Suisse asset management.