The deal brings together two highly complementary investment managers and is a response to increasing client demand for investment strategies suited to a changing inflationary environment.
H2O, which was founded in 2010 and currently manages $14.6bn on behalf of clients, will provide extensive infrastructure and operational support to enable Arctic Blue to pursue its next level of growth. Arctic Blue, which will continue to be led by CIO and founder Jean-Jacques Duhot, will add its flagship fund, the Arctic Blue Original Strategy, and its equity-focused Atlanterra Strategy, to the H2O distribution platform. Both trade a diversified portfolio of breakout, trend and reversal models across three time horizons - short, medium and long term.
The Arctic Blue strategy was launched in 2008 at the Canadian sovereign pension Caisse de Depot at Placement de Quebec. After deployment at CIBC and Millennium Capital Partners, it was seeded as a stand-alone firm by Stable Asset Management in 2014.
Bruno Crastes, CEO of H2O, said: “Arctic Blue’s systematic commodity-focused strategies perfectly complement our existing suite of products. We already share a number of top tier clients, and we look forward to serving them even better as a combined entity.”
Cyril Beriot, Head of Managed Accounts at H2O, added: “This deal is timely given current market conditions. We expect the global economy to enter a reflationary phase over the short-to-medium term and our clients will now benefit from a suite of high-quality strategies across all asset classes that are perfectly suited to this new environment.”
Jean-Jacques Duhot, Founder of Arctic Blue, said: “Joining with H2O will enable us to bring the best possible investment strategies in commodities to new and existing investors. Like H2O, we are a specialist team combining strong expertise in our sector to deliver the best returns for our investors. We look forward to pursuing our next level of growth as part of the H2O team.”
Erik Serrano Berntsen, CEO of Stable, said: “Our partnership with Arctic Blue has seen the team grow from a start-up manager to a globally recognised systematic asset management firm. This transaction represents the exit of another successful seed investment for Stable, as we turn our focus towards building our next portfolio of specialist managers through the Stable Seed Fund. We couldn’t have found a better partner than H2O to continue supporting their success and look forward to seeing Arctic Blue going from strength to strength.”
The transaction is currently pending FCA approval.
Co-founded by Bruno Crastes and Vincent Chailley, H2O Asset Management was set up in 2010 with the backing of Natixis Global Asset Management. H2O Asset Management provides institutional, corporate and private investors with access to global macro strategies.
About Arctic Blue
Arctic Blue Capital is a systematic, commodity macro focused asset management firm which traces its roots to programmes launched in 2008 by its CIO Jean-Jacques Duhot at the Canadian sovereign pension fund, Caisse de Dépôt et Placement du Québec before being run in-house at CIBC Bank and Millennium Capital Partners. Arctic Blue was seeded by Stable Asset Management and opened to external investors in June 2014.
About Stable Asset Management
Stable Asset Management is a hedge fund seeder focused on backing specialist hedge fund managers. With offices in London and New York, the Stable model is one of hands on support, supporting its managers in the set-up, launch, and growth of their firms across all business functions, from operations to distribution.
H2O Asset Management L.L.P.
Filiale de Natixis Asset Management
Société de gestion de portefeuille de droit anglais
Autorisée et régulée par le Financial Conduct Authority (FCA)
Enregistrée sous le n°529105
10 Old Burlington Street - London W1S 3AG
Natixis Global Asset Management S.A.
RCS Paris 453 952 681
Capital: €178 251 690
21 quai d’Austerlitz, 75013 Paris
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material