Marshall Wace Explained

Marshall Wace
Type:LLP
Industry:Financial services
Founders:
    Location:London, United Kingdom
    Products:Investment products
    Aum:US$ 64 billion
    (as of January 2022)

    Marshall Wace LLP is a British hedge fund headquartered in London, England, founded by Paul Marshall and Ian Wace in 1997.[1] Marshall serves as chairman and chief investment officer, and Wace as a chief executive officer & chief risk officer.[2] The company is recognised as one of the world's largest hedge fund managers.[3] [4]

    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.[5] 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.

    In August 2014, Marshall Wace made $36 million from going short on the collapse of the Portuguese bank Banco Espírito Santo.[6]

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

    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.[7]

    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.[8] Profits amounted to £538 million which was shared between 26 partners of the company.

    Operations

    Marshall Wace manages several long-short equity funds.[9]

    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. The head office in London is situated on Sloane Street.[10]

    The company is a founding member of the Hedge Fund Standards Board (HFSB)[11] and a member of the Alternative Investment Management Association (AIMA).[12]

    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.[13] The company's funds include UCITS-compliant vehicles.[14]

    Assets under management

    ! Year !! AUM, Billion
    USD$
    1997[15] .05
    2006[16] 4.3
    2007[17] 11
    2008[18] 15
    2009[19] 6.3
    2010[20] 6
    2014[21] 18
    2015[22] 22
    2016[23] 25
    2017 29
    2019[24] 39
    2020[25] 43.8
    2021[26] 55
    2022[27] 64

    External links

    Notes and References

    1. Web site: KKR Strikes Hedge Fund Gold with British Millionaire Pair. Bloomberg News. Metcalf. Tom. Perlberg. Heather. 16 April 2019. 10 June 2020.
    2. Web site: Marshall Wace LLP. Bloomberg. 10 June 2020.
    3. Web site: Fletcher. Laurence. 2020-09-25. Hedge fund Marshall Wace to open Singapore office. https://ghostarchive.org/archive/OBG2j . 2022-12-11 . subscription . live. 2020-10-08. www.ft.com. en-GB.
    4. Web site: Brinded. Lianna. The 13 richest hedge fund managers in Britain. 2021-06-06. Business Insider. en-US.
    5. Web site: Company Overview of Marshall Wace LLP . Bloomberg. April 24, 2019.
    6. Web site: Espirito Santo Still Haunting Portugal ETF. Yahoo! Finance. 6 August 2014. 10 June 2020.
    7. News: Marshall Wace targets $1bn for new green hedge fund . https://ghostarchive.org/archive/P20ld . 2022-12-11 . subscription . live . Financial Times.
    8. News: Martin . Emily Gosden, Ben . 2023-12-11 . Marshall Wace partners share £538m — down a quarter . en . 2023-12-11 . 0140-0460.
    9. Web site: Marshall Wace Long-Short Fund Reports Record Loss. 2021-06-06. www.bloomberg.com.
    10. Web site: Contact . 22 April 2022 . Marshall Wace LLP.
    11. Web site: Hedge Fund Standards Board - Annual Report 2009 . 10 June 2020 . Hedge Fund Standards Board.
    12. Web site: AIMA . AIMA Council . 2021-06-06 . www.aima.org.
    13. News: Morgensonjuly. Gretchen. Surveys Give Big Investors an Early View From Analysts. 17 May 2019. The New York Times Company. DealBook. New York Times. 15 July 2012. United States. A1. English. subscription.
    14. News: Ahmed. Azam. Paulson's New Highly Regulated Hedge Fund. 17 May 2019. The New York Times Company. DealBook. New York Times. 15 December 2010. United States. English. subscription.
    15. News: Fortado. Lindsay. Sir Paul Marshall, co-founder Marshall Wace, backing Brexit. https://ghostarchive.org/archive/gfZdO . 2022-12-11 . live. 17 May 2019. Nikkei. Financial Times. 23 April 2017. English. subscription.
    16. News: Mackintosh. James. Marshall Wace aims for €1.5bn listing. https://ghostarchive.org/archive/EDx9k . 2022-12-11 . live. 18 May 2019. Nikkei. Financials. Financial Times. 13 November 2006. English. subscription.
    17. News: Helen. Thomas. Marshall Wace co-founder defends methodology. 17 May 2019. Nikkei. Alphaville. Financial Times. 14 January 2007. English. subscription.
    18. News: Mackintosh. James. Marshall Wace raises €2bn for new fund. https://ghostarchive.org/archive/PPYkX . 2022-12-11 . live. 17 May 2019. Nikkei. Financials. Financial Times. 9 March 2008. London. English. subscription.
    19. News: Mackintosh. James. GLG Partners loses top spot in chart. https://ghostarchive.org/archive/yCKqU . 2022-12-11 . live. 17 May 2019. Nikkei. Financials Services. Financial Times. 17 March 2009. English. subscription.
    20. News: Jones. Sam. Marshall Wace investors poised to wind up listed fund. https://ghostarchive.org/archive/3efcQ . 2022-12-11 . live. 17 May 2019. Nikkei. Financial Times. 15 August 2010. English. subscription.
    21. News: Agnew. Harriet. Alloway. Tracy. Marshall Wace buys controlling stake in Eaglewood Capital. https://ghostarchive.org/archive/HaQWr . 2022-12-11 . live. 17 May 2019. Nikkei. Financial Times. 25 April 2014. New York, N.Y., United States. English. subscription.
    22. News: Stevenson. Alexandra. Bray. Chad. K.K.R. Takes 24.9% Stake in Hedge Fund Marshall Wace. 17 May 2019. The New York Times Company. DealBook. New York Times. 9 September 2015. New York, N.Y., United States. B5. English. subscription.
    23. News: Fortado. Lindsay. Marshall Wace partners profit as performance fees jump. https://ghostarchive.org/archive/IsEcO . 2022-12-11. 17 May 2019. Nikkei. Financial Times. 9 December 2016. English. subscription.
    24. News: Fletcher. Laurence. 27 February 2019. Hedge fund Marshall Wace hits jackpot with bets on struggling trio. English. Financial Times. Nikkei. Financial Services. London. https://ghostarchive.org/archive/fXuuN . 2022-12-11 . live. subscription. 18 May 2019.
    25. Web site: Carpenter. Scott. Hedge Fund Marshall Wace Will Bet On ESG Stocks With New $1 Billion Fund. 2020-11-24. Forbes. en.
    26. Web site: Fletcher. Laurence. 2021-07-06. Marshall Wace to make foray into investing in crypto sector. https://ghostarchive.org/archive/KyVcZ . 2022-12-11 . subscription . live. 2022-02-03. www.ft.com. en-GB.
    27. Web site: Kumar. Nishant. 2022-01-26. Billionaire Paul Marshall's Hedge Fund Just Made This Historic Move on Value Stocks. 2022-04-04. www.bloomberg.com. en-GB.

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