AQR hires ex-Guggenheim quant unit head
Quant shop AQR Capital Management has hired Marcos López de Prado as a principal and head of machine learning.
Most recently, López de Prado founded and led Guggenheim Partners’ quantitative investment strategies unit, where he led a team that developed high-capacity machine learning strategies and managed portfolios for up to $13 billion in assets.
In February this year, Guggenheim Partners spun out the unit to López de Prado after he filed a lawsuit against the money management firm, several Guggenheim-related entities and executives the month prior.
The case then was voluntarily dismissed and filed under seal, according to a court document. The reason for the lawsuit could therefore not be determined but Guggenheim said in a statement that both parties have resolved a dispute over the ‘ownership of certain intellectual property.’
López de Prado started at Guggenheim in 2014 and managed several multi-billion dollar internal funds for the firm, according to his LinkedIn page at the time.
As head of machine learning at AQR, he will be part of AQR’s research and portfolio management teams and will focus on further developing the machine learning tools and techniques used at the firm.
AQR said in addition to hiring López de Prado, who authored the graduate textbook ‘Advances in Financial Machine Learning’ and dozens of scientific articles on the subject, the firm is also looking to bring on more resources to further develop machine learning tools.
'We are pleased to have Marcos join AQR to lead our machine learning group,’ said Cliff Asness, AQR managing principal and chief investment officer. ‘Our foundation in applied academia and our culture of intellectual curiosity mean we are always relentlessly looking for new data, signals and techniques to strengthen our investment process and build long-term persistent strategies. Our continued investment in machine learning will further advance these efforts.’
Greenwich, Conn.-headquartered AQR Capital Management had approximately $226 billion in assets under management as of June 30.
American Beacon launches second interval fund
American Beacon has partnered with alternative asset manager Apollo Global Management to launch its second interval fund, the American Beacon Apollo Total Return fund, today.
The fund, which is managed by Apollo’s James Zelter, Joseph Moroney and John Zito, will allocate the fund’s assets across four areas consisting of US corporate credit, structured credit, global corporate credit and real estate credit.
Apollo, which had approximately $269 billion assets under management as of June 30, invests in credit, private equity, and real assets across nine industries.
In July, American Beacon partnered with $16 billion credit specialist Sound Point Capital Management to launch its first credit-focused interval fund, the American Beacon Sound Point Enhanced Income fund.
Unlike open-end mutual funds, interval funds are closed-end funds that periodically offer to repurchase their shares from shareholders. They do not provide daily liquidity but instead offer investors an ability to redeem up to a certain percentage of the fund at regular, periodic intervals.
'The fund complements our comprehensive roster of strategies and provides investors with the potential to generate attractive risk-adjusted returns by leveraging the capabilities of one of the leading credit platforms in the world,’ said Gene Needles, American Beacon’s chairman and chief executive. ‘This fund may allow main street investors to seek to capitalize on some of the sharpest thinking Wall Street has to offer. We’re delighted to make this vehicle available to our clients.’
American Beacon Advisors, an affiliate company of Resolute Investment Managers, had $58.1 billion in assets under management while Resolute Investment Managers as a whole had $68.9 billion in assets under management as of June 30.
To read Citywire’s profile on American Beacon’s top gatekeeper Needles, click here.