Nuveen Investments, in a strategic step forward, had inked an agreement with HydePark Investment Strategies, a highly regarded specialist in enhanced equity investment management. The deal also includes Richards & Tierney, Inc., a firm that provides specialized risk control and portfolio advisory services to institutional investors.
Nuveen Investments, a leading provider of diversified investment services to institutional and high-net-worth investors, today announced an agreement to acquire HydePark Investment Strategies, a highly regarded specialist in enhanced equity investment management. The acquisition, which also includes Richards & Tierney, Inc., a firm that provides specialized risk control and portfolio advisory services to institutional investors, extends Nuveen’s equity-based capabilities and offerings, especially for the firm’s fast-growing institutional business.
HydePark currently has approximately $350 million in assets under management for clients which include GE Asset Management, The University of Minnesota Foundation, and COPIC Insurance Company. HydePark is an extension of Richards & Tierney’s pioneering work in investment risk management. Its enhanced equity products have generated strong performance track records since they were developed. Richards & Tierney was founded in 1984 by Thomas M. Richards and David E. Tierney, who are known throughout the institutional investment community for their original work on issues pertaining to structuring and managing institutional investment programs. Its risk control and portfolio advisory services are used by a diverse group of leading institutional clients, including CalPERS, Target Corp., General Mills, The Regents of the University of California, and The American University of Cairo.
Financial terms were not disclosed and the transaction is not expected to impact 2007 earnings per share. Closing of the transaction is anticipated at the end of the month. HydePark and Richards & Tierney will continue to operate under current management. HydePark will maintain its existing, independent investment process and will be marketed under the Nuveen brand.
“This is a strategic step in the continuing development of our firm,” said Timothy R. Schwertfeger, Chairman and CEO, Nuveen Investments. “HydePark and Richards & Tierney are known for their thought leadership and innovation, and will be strong additions to our growing family of investment products and services. Their disciplined, high-quality capabilities will expand our equity-based offerings designed to help secure the goals of institutional and high-net-worth investors and those who serve them.
“HydePark and Richards & Tierney will play a key role in the development of Nuveen’s investment platform. They will expand our institutional equity investment expertise based in Chicago and also allow us to enhance our asset-allocation, multi-strategy and overlay capabilities across our entire retail product spectrum of separately managed accounts, structured products and mutual funds.”
“We are excited about the opportunity to become part of Nuveen Investments,” said both Tierney and Richards. “We look forward to continuing the development of our investment process and team, and the variety of specialized investment solutions we can offer. We also look forward to an expanded audience for our capabilities through Nuveen’s distribution services and to the benefits we can realize by drawing upon Nuveen’s infrastructure support.”
Enhanced equity strategies are designed to consistently outperform a chosen benchmark while assuming minimal additional risk. Currently, HydePark’s products include an Enhanced 500, an Enhanced 1000, an Enhanced 2000, an Enhanced Midcap, a Large Growth portfolio, a long-short market neutral portfolio and a series of enhanced portfolios customized to client needs. Historically, each product has delivered excess returns relative to its benchmark. For example, the Enhanced 500 has consistently outperformed the S&P 500 benchmark in 1-year, 3-year, 5-year, and since-inception periods. The Enhanced 500 outperformed the S&P 500 by 85 basis points during the first quarter of 2007, by 235 basis points for the past 12 months, and by 177 basis points annualized since its inception in September 2001.
“We anticipate strong demand for their expertise and envision applying HydePark’s risk-managed process to a range of indices, enabling us to develop an array of high-capacity enhanced equity products for our institutional clients,” said Alan Berkshire, Senior Executive Vice President, Institutional Services Group, Nuveen Investments. The institutional assets under management of Nuveen Investments, through its branded and highly-specialized investment teams, have tripled to $32 billion in the past three years. “Richards & Tierney will continue to offer institutional investors access to the vast experience and expertise of the firm’s key people, with a focus on structuring and managing value-added funds, designing risk-control portfolios, developing new products, producing customized performance measurement tools and conducting research.”
Tierney, Ph.D., is President, Chief Investment Officer and Portfolio Manager of HydePark as well as Co-founder and Principal of Richards & Tierney. For more than 25 years he has done extensive work in portfolio analysis and construction, risk-budgeting and risk-control methods and investment management. In the mid-‘90s, he led the development of the proprietary, quantitative investment models used by HydePark. Previously, he helped manage a large corporate pension fund.
Richards, CFA, is Co-founder and Principal of Richards & Tierney. He has more than 25 years experience in institutional investment management. A frequent speaker at investment conferences, Richards has published a variety of articles in the investment and finance literature. Most recently, he and Tierney coauthored the chapter on Performance Evaluation used in the CFA examination series. Previously, he designed and implemented a large bank trust department’s investment analytics service and was responsible for the investment operations of a large corporate plan sponsor.
Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutions and high-net-worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of NWQ, Nuveen, Santa Barbara, Tradewinds, Rittenhouse and Symphony. In total, the Company manages $162 billion in assets as of year-end 2006. Nuveen Investments is listed on The New York Stock Exchange and trades under the symbol “JNC.”
Certain statements made by the Company in this release are forward-looking statements. The Company's actual future results may differ significantly from those anticipated in any forward-looking statements due to numerous factors. These include, but are not limited to, the effects of the substantial competition in the investment management business, including competition for access to brokerage firms’ retail distribution systems, the Company’s reliance on revenues from investment management contracts which renew annually, regulatory developments, accounting pronouncements, and other additional risks and uncertainties as set forth in the Company’s filings with the SEC. The Company undertakes no responsibility to update publicly or revise any forward-looking statements.
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