BlueCove and Ares Management Corporation have reached an agreement under which Ares will acquire a minority equity stake in BlueCove with the option to acquire control of the business over a multiyear term. Terms of the transaction were not disclosed.
BlueCove has been purpose-built to play a leading role in the development of scientific fixed-income asset management as a mainstream investment style. Scientific investing provides investors with both a complement and an alternative to the traditional active discretionary investment process that has dominated active fixed-income management for decades. Potential advantages for investors include an increased probability of repeatable outcomes, a technology-enabled increase in investment breadth, increased investment process transparency, excess returns that tend to exhibit a low correlation with those of discretionary managers, and a medium-term opportunity to harvest natural alpha from an underrepresented investment methodology
