SSgA Sells Hedge Fund Business

The asset management firm and hedge fund group SSARIS will part ways after 13 years of affiliation.

State Street Global Advisors (SSgA) is set to sell its hedge fund affiliate group SSARIS to the division’s senior executives.

A spokesperson for the asset management firm confirmed that the two organizations “have decided to end their relationship” after 13 years of working together.

“This decision reflects a mutual agreement that operating independently is the best course of action for both organizations and their clients,” the spokesperson said.

According to SSARIS’ website, the Wilton, Connecticut-based firm serves as the “hedge fund and funds-of-hedge-funds investment platform for SSgA’s institutional clientele.” It also manages six hedge funds and six funds-of-hedge-funds for investors in North America, Europe, and Asia.

Furthermore, SSARIS has a hedge fund advisory service for asset owners that assists with portfolio construction and hedge fund monitoring.

A regulatory filing revealed it managed $1.4 billion as of December 31, 2013.

SSgA joined up with SSARIS in 2001, purchasing a 60% stake in the company. The parent firm revealed that the majority ownership would be sold to SSARIS’ employees.

“We will transition SSARIS’ investment responsibilities for two SSgA-branded strategies co-managed by SSARIS to our investment solutions group,” SSgA’s spokesperson said. “We are committed to meeting our clients’ needs for alternative strategies.”

As of September 30, 2014, State Street managed $2.4 trillion in assets, of which $124 billion were in alternative investments.

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By Sage Um

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