Ex-Berenberg Bankers Raise $2.2 Billion, Take On FX Markets

(Bloomberg) --

7orca Asset Management AG, a Hamburg-based company set up by eight former Berenberg bankers, has raised almost 2 billion euros ($2.2 billion) in customer money in the first 18 months after its launch, Chief Executive officer Tindaro Siragusano said in an interview.

In an industry where margins are under pressure from an investor flight into cheaper, passive products, 7orca (pronounced “seven orca”) has found a niche by focusing on quantitative investment strategies to actively hedge currency risks, a practice known as currency overlay.

“Most asset managers don’t get involved in currency management,” Siragusano said. “Many people in the industry tend to focus on either equities or bonds." 7orca, which also offers a short volatility strategy, currently employs 13 people and more hires are expected this year.

The company’s customers include pension funds, insurance companies, endowments and family offices. There are also two strategic partners. A Berlin-based pension fund owns 13% of the company and has invested about 300 million euros with 7orca. Asset Manager Assenagon owns another 13%. The remaining 74 percent is held by the employees.

Siragusano already has the next milestone in sight. By the end of this year, he expects assets under management to reach at least 2.5 billion euros.

He wants to hold on to the office in Hamburg, right next to the water. The distance to the hustle and bustle of financial centers like Frankfurt and London helps to see things more clearly, he said.

Original Story:
Hamburger Berenberg-Abspaltung verwaltet inzwischen 2 Mrd. Euro

Reporter on the original story: Stephan Kahl in Frankfurt at skahl@bloomberg.net

Editors responsible for the original story: Erhard Krasny at ekrasny@bloomberg.net, Andrew Blackman

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