AM Investment Partners LLC, a New York-based alternative asset management company and BAM Capital have agreed to combine in a merger of equals, with each firm contributing its respective portfolios, management teams and infrastructure to the newly combined entity which will be called AM Investment Partners.
The firm will be run by BAM Capital co-founders Ross Berman and Hal Mintz, and AM Investment Partners co-founders Mark Friedman and Adam Stern, and will continue to focus primarily on relative value strategies within the volatility asset class. The newly combined entity, whose major strategy will be a long volatility product, is anticipated to manage approximately $600m.
Mr Berman said: “We have known the co-founders of AM and several of the portfolio managers for years. A combination with them brings forth many powerful synergies. Among our peers in the volatility space, we admire AM and believe its similar investment philosophy and culture will be a good fit with BAM. There is tremendous potential in leveraging our 17 years of experience building and managing hedge funds as well as the decades of business and investment experience among the professionals of the combined firms.”
Mr Friedman said: “We have had a friendly dialogue with Mr Berman and Mr Mintz over the years, and the similarity of our styles and the way we have built our respective companies makes me confident that this merger is the natural next step in further developing our core discipline, which is rooted in identifying idiosyncratic volatility.”
Mr Mintz said: “With AM’s investment talent, technology, and world-class infrastructure, we believe that the combined entity will have one of the few ‘institutional’ products that is focused on absolute total returns while maintaining attractive uncorrelated characteristics.”
New York-based BAM Capital and its affiliates manage two hedge fund complexes and one separate account, which pursue volatility arbitrage strategies.