Marshall Wace
| Marshall Wace | |
|---|---|
| legal form | Hedge funds |
| founding | 1997 |
| Seat | London , UK |
| management | Paul Marshall (Chairman) and Ian Wace ( CEO ) |
| sales | $ 40.06 billion |
| Branch | Financial services |
| Website | [1] |
| As of November 6, 2019 | |
Marshall Wace LLP is a London-based hedge fund founded in 1997 by Paul Marshall and Ian Wace. Marshall is chairman and chief investment officer, and Wace is chief executive officer and chief risk officer . Prior to founding the fund, Paul Marshall was with Mercury Asset Management and Ian Wace with Deutsche Bank . The company is known for holding risky long and short positions that sometimes rock the global equity market. Many shareholders use the short positions held by Marshall Wace - also jokingly called " The Marshal " - in order to assess whether the purchase of a share is worthwhile. Due to the often heavily staged press coverage in this regard, the hedge fund becomes an indicator but also a manipulator of the stock market and can strongly influence the development of a company in which the short position is held.
history
In 1997, Marshall and Wace formed "Marshall Wace" with $ 50 million under management. $ 25 million came from George Soros and another $ 25 million from family members and friends of the entrepreneurs.
The company had more than $ 40 billion under management in 2019 and operates from administrative offices in London, New York and Hong Kong. The head office in London is on Sloane Street.
In 2015, Kohlberg Kravis Roberts agreed to purchase a 24.9 percent stake in Marshall Wace.
strategy
Marshall Wace manages a number of basic short equity funds. A fundamental analysis identifies companies that are incorrectly valued in the short term. Often there is speculation on the collapse of the company by building up short positions. The company uses computer-aided approaches based on fixed algorithms and fundamental approaches such as those used by stock analysts. Depending on the development of the observed company, positions are gradually added or removed.
Examples
- In 2014, Marshall Wace earned € 27 million from the collapse of the Portuguese bank Banco Espirito Santo.
- In 2016, Marshall Wace successfully bet on falling Deutsche Bank shares.
- 2017 Marshall Wace bets Juventus and earns £ 5m.
- 2018 Marshall Wace successfully bets against numerous British companies such as Debenhams , Intu , Kingfisher , Dunelm Group and Superdry in the course of the Brexit negotiations
- In 2019, Marshall Wace earned about £ 20 million from falling Metro Bank PLC, Marks and Spencer Group and Ted Baker PLC.