NEW YORK (HedgeWorld.com)–Bear Stearns Asset Management has purchased the risk analytics software provider Measurisk, New York, for an undisclosed sum.
The deal allows Bear Stearns to provide its clients with risk analytics and measurement, to use the software for its own portfolio management and to enter a new business working with prime brokerage firms, custodians and administrators in providing risk tools in the hedge fund industry.
Also participating in the transaction was Miller Taback + Co. LLC, a New York-based institutional trading firm that had an existing stake in Measurisk. Miller Taback will remain a minority partner in the new entity that has been renamed Bear Measurisk.
Greg Quental is president and CEO of the new company and was hired at the end of December from a private equity firm, Ark Advisors, New York, to help lay the foundation for the Measurisk deal. He believes that Bear Stearn’s can use the technology to manage and communicate risk to investors in the firm’s traditional asset management, fund of funds and hedge fund businesses.
“One of the great strengths of this product is that it gives you a consistent way of looking at risk across traditional and hedge fund portfolios,” Mr. Quental said.
He said he expects interest in the software will come from plan sponsors who already may be invested in Bear Stearn’s traditional investment funds and who want to measure the risk inherent in their overall portfolio, including hedge funds.
Officials hope to keep Measurisk’s existing clients. Measurisk first gained widespread recognition in 2000 when the World Bank, Washington, hired the firm to provide risk analytics for the hedge fund portfolio within the bank’s retirement fund. Other mandates followed including at California Public Employees’ Retirement System, Sacramento, which signed up to use the analytics for its emerging hedge fund portfolio.
Measurisk was founded in the late 1990s by Kelsey Bigger, who quit as CEO in April 2002 to join a funds of funds . Since that time, the firm has reorganized and now focuses much of its business on hedge funds and funds of funds . Some of the reorganization included layoffs, but in the future Bear Stearns officials expect the current Measurisk team to stay in place and to grow.