United States firm Zebra Capital has partnered with business development and product adviser Clearway Capital as it aims to grow its business in Australia.
The firm was founded in 2001 by Yale School of Management finance professors Roger Ibbotson and Zhiwu Chen. Risk manager Peter Schaffer joined the firm as a third partner in 2008. The team consists of 14 people, five of whom have PhDs.
The firm manages fundamentally-derived but quantitatively-driven market-neutral and long-short equity strategies, incorporating only modest leverage.
"Zebra decided to begin working with Clearway Capital as we believe Australia and New Zealand have the right investment landscape," Zebra Capital partner Ibbotson said.
"We see our investment strategy as being for all seasons due to its low correlation with equity and fixed income indices over time."
Zebra is Clearway Capital's third client. The firm currently represents US firms Constitution Capital Partners and Shenkman Capital Management.
The firm had a distinct approach in its quantitative processes, Clearway Capital managing director Dennis Mothoneos said.
"They distinguish themselves from many of their quant fund competitors in the adaptive nature of their models, which aim to reduce some of the inherent flaws in the quantitative processes," Mothoneos said.
"It's refreshing as well to find a manager that has concentrated on portfolio management and establishing a track record ahead of implementing an aggressive marketing campaign.
"They have been managing money since 2001, but hired their first sales professionals in 2008."
