The Swiss bank is quietly folding a quantitative investment house spun out of Zurich's prestigious ETH technical university, finews.asia has learned.
Zurich-based Credit Suisse is folding Simag, an ETH spin-off for quantitive investment solutions using physics, complex self-organizing systems, deep learning, and behavioral finance, into SG Value Partners, another boutique it oversees, according to a memo seen by finews.asia. The move was first reported by Swiss banking blog «Inside Paradeplatz» (in German) on Thursday.
The head of Simag, Blackrock veteran Christian Gast, as well as Chairman David Solo are leaving as a result of Credit Suisse's reorganization of the three-year-old boutique. SG Value Partners, including Simag's activities, will be run by Sven Sommer, with Gregor Trachsel as an investment head.
Quant Funds Struggle
The move comes against the backdrop of a reevaluation by Credit Suisse of what it wants from its wider asset management activities, as finews.com reported last month. Simag's ESG (environmental, social, and governance) stock funds will be overseen by Daniel Schmitt, according to the memo.
The Credit Suisse memo didn't detail a precise reason for abandoning Simag's original set-up. Quant funds are having an awful year industry-wide, with even long-established and well-known firms posting sharp losses.
