Guggenheim Partners has spun out a $13 billion quantitative investment strategies unit to Marcos Lopez de Prado, a senior manager who filed a lawsuit against the $305 billion firm last month.
Lopez de Prado, who built the unit from scratch, filed a complaint against the money management firm, several Guggenheim-related entities and executives last month.
The case has since been voluntarily dismissed and filed under seal, according to a court document. The reason for the lawsuit could therefore not be determined but the firm said in a statement that both parties have resolved a dispute over the ‘ownership of certain intellectual property.’
A Guggenheim spokesman declined to comment further on the lawsuit.
Lopez started at Guggenheim in 2014 and managed several multi-billion dollar internal funds for the firm, according to his LinkedIn page.
He built the computer-driven investing unit two and a half years ago to manage portfolios of investment grade bonds that aim to provide better risk-adjusted returns and is leaving Guggenheim to start his own business, according to the firm.
An expert in mathematical finance, he also held multiple quant roles in investment firms including Tudor Investment Corporation, Peak6 Futures and Citadel Investment Group.
'We look forward enthusiastically to working with Lopez de Prado and his colleagues as they build their new firm to make their technologies more widely available,' said a statement from Guggenheim.