US - Wilshire Associates, the Santa Monica based consultant, has announced that the members its equities team are to leave the firm to form their own business.
The new firm, which will manage all of Wilshire’s equities business, will set up shop by the end of the first quarter of 2002. The new firm - as yet unnamed - will be retained by Wilshire as a sub-advisor to the consultant’s fund of fund’s products, the Wilshire Target Funds.
The new firm is being formed by senior Wilshire staff led by Tom Stevens - currently Wilshire’s senior managing director - and managing directors Hal Reynolds and Dave Borger, and Stuart Matsuda, vice president. Wilshire will now refocus its efforts on investment consulting, analytics and its fund of funds and private equity products.
Wilshire entered the asset management arena in 1983, and currently runs $9bn in equities, fixed income and private equity for institutional and high net worth investors. Equities account for approximately $1.7bn of the firm’s total assets under management.
Wilshire’s founder and chief executive officer, Dennis Tito, said of the equities team’s departure: “This is a win-win for Wilshire and the new entity. We are confident that by spinning off the dynamic alpha product while retaining the resulting company as sub-advisors for our Wilshire Target Funds, we will enhance our ability to provide our clients with the type of leading edge consulting, investment products and analytical services that are the hallmark of Wilshire Associates.”
Stevens, speaking about the formation of the new firm, said: “Dennis and I first discussed the possibility of a spin off of a portion of the equity team 10 years ago. We feel that the time is right to make a move and appreciate his support and look forward to maintaining a strong, positive relationship with all of our friends at Wilshire.”
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