The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:F-Squared Finds a Buyer, Files Chapter 11 Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, July 8, 2015

F-Squared Finds a Buyer, Files Chapter 11

Reported by Neil Anderson, Managing Editor

Laura Dagan has found a buyer for F-Squared, even as the beleaguered ETF strategist files for a reorganization bankruptcy.

David Cabot
Broadmeadow Capital
President, Co-Founder
Today Wellesley, Massachusetts-based F-Squared Investments filed voluntary chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware and revealed an asset purchase agreement that would entail Broadmeadow Capital buying F-Squared's intellectual property, investment strategies, "and substantially all of the investment contracts."

A statement from F-Squared explains how the process will work:

Eric Biegeleisen
Broadmeadow Capital
Chief Investment Officer
The proposed agreement with Broadmeadow Capital contemplates a Court-supervised auction process, which is designed to achieve the highest or otherwise best offer for the Company's assets. The agreement with Broadmeadow Capital sets the floor, or minimum acceptable bid, and is subject to Bankruptcy Court approval and certain other conditions. A final sale approval hearing is anticipated to take place shortly after the auction with the anticipated closing contingent on the approval of the Court and the consent of F-Squared’s clients.

Broadmeadow is a quantitative asset manager led by David Cabot and Eric Biegeleisen. Biegeleisen and Cabot previously held top positions at another ETF strategist, Boston-based, Windhaven Investments, which Schwab bought for $150 million in 2010.

Broadmeadow is a subsidiary of Cedar Capital, which is in turn backed by private equity firms FTV Capital and LLR Partners.

Paul Ingersoll, CEO of Cedar Capital, states that the deal "reinforces Cedar Capital's position as a single point of access to innovative investment strategies well suited to evolving market dynamics."

"Once completed, the acquisition will provider for uninterrupted service under the leadership of the Broadmeadow Capital team, supported by Cedar Capital's robust operating infrastructure," Ingersoll states.

"We see merit in the AlphaSector investment strategies and metholodogies [F-Squared's flagship product suite], despite how their performance track record prior to 2009 was portrayed to investors," Cabot states.

Dagan confirms that at least part of the F-Squared team would join Broadmeadow as part of the deal.

"Broadmeadow Capital shares AlphaSector strategies' research-driven quantitative investment approach," states Dagan, CEO of F-Squared. "Broadmeadow Capital will preserve the continuity of certain F-Squared employees, including investment, research and client relationship professionals, who will join Broadmeadow Capital in connection with the transaction."

News of F-Squared being on the block, with PL Advisors helping with the sale, broke in April, after a tough half-year at the formerly high-flying ETF strategist that was once the biggest in the business. Eight months earlier F-Squared revealed that it had received a Wells notice from the SEC over performance reporting issues for F-Squared's flagship AlphaSector indexes. F-Squared's founding CEO, Howard Present, was replaced by Dagan, and F-Squared (but not Present) settled with the SEC to the tune of $35 million. 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2024: Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use