Analytic Investment Management acquires TSA Capital Management; two firms offer complementary quantitative investment strategies to institutional clients

Business Wire, Jan 9, 1996

IRVINE, Calif.--(BUSINESS WIRE)--Jan. 9, 1996--Analytical Investment Management Inc., a pioneer in managing option-enhanced equity and fixed-income securities with $1.2 billion in assets under management, announced today that it has entered into an agreement to acquire and merge with TSA Capital Management, a complementary Los Angeles quantitative investment manager with $1.3 billion in assets under management.

The combined firm will be named Analytic/TSA Global Asset Management. The firm intends to combine its operations and has undertaken a site study. Financial terms of the transaction were not disclosed.

"The two firms share a commitment to quantitative investment management and will be able to offer the clients of both organizations a broader range of products to enhance performance and limit risk across a spectrum of asset classes and global markets," said Alan Adelman, president and chief executive officer of Analytic, who will continue in these roles in the expanded company. "Analytic's expertise in option overlay strategies is thoroughly complementary with TSA's renowned capabilities in global asset allocation and tactical asset allocation."

"Analytic and TSA are culturally compatible, and together we will have the critical mass to povide a wider array of quantitative products to the clients of both firms," said Dr. Roger Clarke, president and chief investment officer of TSA, who will be co-chief investment officer of the new entity with Dr. Alan Lewis of Analytic. "All of us at TSA are pleased to join forces with a firm that was one of the first to employ sophisticated option-enhanced strategies and is committed to staying at the forefront of quantitative investment methodologies and technology."

Founded in 1985, TSA Capital Management emphasizes U.S. and global tactical asset allocation, currency management, quantitative equity and fixed-income management, as well as option yield curve strategies. TSA manages assets for corporate and public retirement plans and endowments, as well as international institutions. In recent years, TSA has directed much of its research toward applying its quantitative investment methodology to overseas markets.

Founded in 1970, Analytic Investment Management emphasizes quantitative risk control in equity and fixed-income securities management. Analytic's portfolio strategies stress broad diversification, control risk and return enhancement using exchange traded options and futures. Analytic manages assets for pension funds, endowments and other institutions. Since 1985, Analytic has been a wholly owned affiliate of United Asset Management Corp. (NYSE:UAM). Through 45 affiliates with approximately $139 billion in total assets under management, UAM provides investment management services to over 6,000 primarily institutional clients.

CONTACT: Analytic Investment Management Inc., Irvine

Alan Adelman, 714/833-0294