Marshall Wace

Last updated
Marshall Wace
Company type LLP
Industry Financial services
Founded1997;27 years ago (1997) [1]
Founders
Headquarters London, United Kingdom
ProductsInvestment products
AUM US$ 64 billion
(as of January 2022)
Website www.mwam.com

Marshall Wace LLP is a British hedge fund headquartered in London, England, founded by Paul Marshall and Ian Wace in 1997. [6] Marshall serves as chairman and chief investment officer, and Wace as a chief executive officer & chief risk officer. [7] The company is recognised as one of the world's largest hedge fund managers. [8] [9]

Contents

History

Before starting the fund, Paul Marshall was Head of European Equities at Mercury Asset Management, whilst Ian Wace was Head of Equities Trading at Deutsche Bank. [10] In 1997, Marshall and Wace launched Marshall Wace; they were managing $50 million — $25 million from George Soros and $25 million sourced via family and friends. [11]

In August 2014, Marshall Wace made $36 million from going short on the collapse of the Portuguese bank Banco Espírito Santo. [12]

In 2015 Kohlberg Kravis Roberts agreed to buy a 24.9 percent stake in Marshall Wace. [1]

In 2020, Marshall Wace announced its plans to raise $1 billion for a new green hedge fund which will depend on the environmental and ethical attributes for trading stocks. [13]

In December 2023, the company reported revenues of £1.2 billion in the year ending February 2023, down from £1.5 billion on the previous year. [14] Profits amounted to £538 million which was shared between 26 partners of the company. [14]

Operations

Marshall Wace manages several long-short equity funds. [15]

The firm manages more than $64 billion as of January 2022 and operates from fund management offices in London, New York, Hong Kong, Shanghai, and Singapore. [16] The head office in London is situated on Sloane Street. [17]

The company is a founding member of the Hedge Fund Standards Board (HFSB) [18] and a member of the Alternative Investment Management Association (AIMA). [19]

Products

Marshall Wace runs a proprietary alpha capture system TOPS (Trade Optimised Portfolio System), which polls the investment ideas of equity sell-side practitioners (generalists, sector specialists, strategists, and economists) around the world and uses algorithms to analyse and optimise this information into liquid equity portfolios. [20] The company's funds include UCITS-compliant vehicles. [21]

Assets under management

YearAUM, Billion
USD$
1997 [11] .05
2006 [22] 4.3
2007 [23] 11
2008 [24] 15
2009 [25] 6.3
2010 [26] 6
2014 [27] 18
2015 [1] 22
2016 [5] 25
2017 [11] 29
2019 [28] 39
2020 [29] 43.8
2021 [30] 55
2022 [16] 64

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References

  1. 1 2 3 Stevenson, Alexandra; Bray, Chad (9 September 2015). "K.K.R. Takes 24.9% Stake in Hedge Fund Marshall Wace" . New York Times. No. DealBook. New York, N.Y., United States. The New York Times Company. p. B5. Retrieved 17 May 2019.
  2. ↑ "British Minister Faces City's Wrath After Speech" . New York Times. No. DealBook. United States. The New York Times Company. 23 September 2010. Retrieved 17 May 2019.
  3. ↑ Stevenson, Alexandra; Goldstein, Matthew (16 July 2014). "Some Top Money Managers Push for Fed to Start Raising Interest Rates" . New York Times. No. DealBook. United States. The New York Times Company. Retrieved 17 May 2019.
  4. ↑ Werdigier, Julia (29 April 2013). "Financiers' Charity Gala Goes the Way of Canapés" . New York Times. No. DealBook. United States. The New York Times Company. Retrieved 17 May 2019.
  5. 1 2 Fortado, Lindsay (9 December 2016). "Marshall Wace partners profit as performance fees jump". Financial Times. Nikkei. Archived from the original on 2022-12-11. Retrieved 17 May 2019.
  6. ↑ Metcalf, Tom; Perlberg, Heather (16 April 2019). "KKR Strikes Hedge Fund Gold with British Millionaire Pair". Bloomberg News . Retrieved 10 June 2020.
  7. ↑ "Marshall Wace LLP". Bloomberg. Retrieved 10 June 2020.
  8. ↑ Fletcher, Laurence (2020-09-25). "Hedge fund Marshall Wace to open Singapore office" . www.ft.com. Archived from the original on 2022-12-11. Retrieved 2020-10-08.
  9. ↑ Brinded, Lianna. "The 13 richest hedge fund managers in Britain". Business Insider. Retrieved 2021-06-06.
  10. ↑ "Company Overview of Marshall Wace LLP". Bloomberg. April 24, 2019.
  11. 1 2 3 Fortado, Lindsay (23 April 2017). "Sir Paul Marshall, co-founder Marshall Wace, backing Brexit" . Financial Times. Nikkei. Archived from the original on 2022-12-11. Retrieved 17 May 2019.
  12. ↑ "Espirito Santo Still Haunting Portugal ETF". Yahoo! Finance. 6 August 2014. Retrieved 10 June 2020.
  13. ↑ "Marshall Wace targets $1bn for new green hedge fund" . Financial Times . Archived from the original on 2022-12-11.
  14. 1 2 Martin, Emily Gosden, Ben (2023-12-11). "Marshall Wace partners share £538m — down a quarter". ISSN   0140-0460 . Retrieved 2023-12-11.{{cite news}}: CS1 maint: multiple names: authors list (link)
  15. ↑ "Marshall Wace Long-Short Fund Reports Record Loss". www.bloomberg.com. Retrieved 2021-06-06.
  16. 1 2 Kumar, Nishant (2022-01-26). "Billionaire Paul Marshall's Hedge Fund Just Made This Historic Move on Value Stocks". www.bloomberg.com. Retrieved 2022-04-04.
  17. ↑ "Contact". Marshall Wace LLP. Retrieved 22 April 2022.
  18. ↑ "Hedge Fund Standards Board - Annual Report 2009" (PDF). Hedge Fund Standards Board . Retrieved 10 June 2020.
  19. ↑ AIMA. "AIMA Council". www.aima.org. Retrieved 2021-06-06.
  20. ↑ Morgensonjuly, Gretchen (15 July 2012). "Surveys Give Big Investors an Early View From Analysts" . New York Times. No. DealBook. United States. The New York Times Company. p. A1. Retrieved 17 May 2019.
  21. ↑ Ahmed, Azam (15 December 2010). "Paulson's New Highly Regulated Hedge Fund" . New York Times. No. DealBook. United States. The New York Times Company. Retrieved 17 May 2019.
  22. ↑ Mackintosh, James (13 November 2006). "Marshall Wace aims for €1.5bn listing" . No. Financials. Financial Times. Nikkei. Archived from the original on 2022-12-11. Retrieved 18 May 2019.
  23. ↑ Helen, Thomas (14 January 2007). "Marshall Wace co-founder defends methodology" . No. Alphaville. Financial Times. Nikkei. Retrieved 17 May 2019.
  24. ↑ Mackintosh, James (9 March 2008). "Marshall Wace raises €2bn for new fund" . No. Financials. London: Financial Times. Nikkei. Archived from the original on 2022-12-11. Retrieved 17 May 2019.
  25. ↑ Mackintosh, James (17 March 2009). "GLG Partners loses top spot in chart" . No. Financials Services. Financial Times. Nikkei. Archived from the original on 2022-12-11. Retrieved 17 May 2019.
  26. ↑ Jones, Sam (15 August 2010). "Marshall Wace investors poised to wind up listed fund" . Financial Times. Nikkei. Archived from the original on 2022-12-11. Retrieved 17 May 2019.
  27. ↑ Agnew, Harriet; Alloway, Tracy (25 April 2014). "Marshall Wace buys controlling stake in Eaglewood Capital" . New York, N.Y., United States: Financial Times. Nikkei. Archived from the original on 2022-12-11. Retrieved 17 May 2019.
  28. ↑ Fletcher, Laurence (27 February 2019). "Hedge fund Marshall Wace hits jackpot with bets on struggling trio" . No. Financial Services. London: Financial Times. Nikkei. Archived from the original on 2022-12-11. Retrieved 18 May 2019.
  29. ↑ Carpenter, Scott. "Hedge Fund Marshall Wace Will Bet On ESG Stocks With New $1 Billion Fund". Forbes. Retrieved 2020-11-24.
  30. ↑ Fletcher, Laurence (2021-07-06). "Marshall Wace to make foray into investing in crypto sector" . www.ft.com. Archived from the original on 2022-12-11. Retrieved 2022-02-03.
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