{{Short description|Asset management firm based in Boston}} {{Use mdy dates|date=December 2023}} {{Infobox company | name = Arrowstreet Capital, Limited Partnership | logo = Arrowstreet Capital.svg | image = | image_caption = | image_size = | trade_name = | native_name = | former_name = | type = Private | traded_as = | industry = Investment Management | founded = {{Start date and age|1999|06}} | founders = {{ubl |John Y. Campbell |Bruce Clarke |Peter Rathjens }} | location = John Hancock Tower, Boston, Massachusetts, U.S. | num_locations = | key_people = {{ubl |Bruce Clarke (Chairman) |Brandon J. Hall (CEO) }} | revenue = | net_income = | aum = US$285 billion (April 8, 2026 filing) <ref>{{cite web |title=Arrowstreet Capital, Limited Partnership – AUM |url=https://whalewisdom.com/filer/arrowstreet-capital-limited-partnership |website=WhaleWisdom}}</ref> | equity = | num_employees = 500 (2026) | parent = | subsidiaries = | website = {{URL|www.arrowstreetcapital.com}} | footnotes = <ref name="ADV">{{cite web |title=Form ADV |url=https://reports.adviserinfo.sec.gov/reports/ADV/111298/PDF/111298.pdf |website=SEC}}</ref> }}
'''Arrowstreet Capital''' (Arrowstreet) is an American investment management firm based in Boston. The firm is noted for its usage of quantitative analysis in its approach to investing as well as maintaining a low profile despite its large number of assets under management.<ref name=":0">{{Cite web |last=Appell |first=Douglas |date=March 4, 2011 |title=Arrowstreet quietly bucks trend with successful quant performance |url=https://www.pionline.com/article/20110307/PRINT/303079981/arrowstreet-quietly-bucks-trend-with-successful-quant-performance |access-date=August 14, 2023 |website=Pensions & Investments |language=en}}</ref>
== Background ==
Arrowstreet was founded in 1999 by Bruce Clarke, the CEO of PanAgora Asset Management along with John Y. Campbell and Peter Rathjens who were also executives at the firm. Arrowstreet was established to manage money for institutional investors by investing in international and emerging market equities. Clients include the Oregon Public Employees Retirement System, CalPERS and Macquarie Group.<ref name=":0" /><ref>{{Cite web |date=June 28, 1999 |title=Ex-PanAgora Execs Start New Fund |url=https://www.financial-planning.com/news/ex-panagora-execs-start-new-fund |access-date=August 14, 2023 |website=Financial Planning |language=en}}</ref><ref>{{Cite web |date=June 11, 1999 |title=PanAgora CEO and investment chief to leave |url=https://www.bizjournals.com/boston/stories/1999/06/07/daily13.html |access-date=August 14, 2023 |website=www.bizjournals.com}}</ref><ref name=":1">{{Cite web |title=Arrowstreet Global Equity Review: Performance, AUM, Founders |url=http://www.insidermonkey.com/blog/arrowstreet-global-equity-review-performance-aum-founders-597346/ |access-date=August 14, 2023 |website=Insider Monkey |language=en-US}}</ref><ref name=":3">{{Cite web |date=November 14, 2018 |title=Retirement Board Meeting |url=https://mysfers.org/wp-content/uploads/2018/11/11142018-Board-Meeting-08-Arrowstreet.pdf |website=San Francisco Employees' Retirement System}}</ref><ref>{{Cite news |last=Reporter |first=a Wall Street Journal Staff |date=November 20, 2002 |title=Calpers Allocates Funds To Arrowstreet Capital |language=en-US |work=Wall Street Journal |url=https://www.wsj.com/articles/SB1037754451627251228 |access-date=August 14, 2023 |issn=0099-9660}}</ref>
In 2002, Arrowstreet launched its hedge fund business. It had to assure its clients that the new business would not drain talent from its traditional asset management business or cause intra-office conflict with respect to compensation as the strategies were different.<ref name=":2">{{Cite web |last=Clair |first=Chris |date=December 14, 2006 |title=New set of problems: Hedge funds cause conflict, compensation puzzles |url=https://www.pionline.com/article/20020722/PRINT/207220725/new-set-of-problems-hedge-funds-cause-conflict-compensation-puzzles |access-date=August 14, 2023 |website=Pensions & Investments |language=en}}</ref>
''Pensions & Investments'' noted that Arrowstreet makes use of computer models to allow the firm to perform well in different market environments and tends to avoid systematic biases such as favouring certain stocks. The models appear to take "non-linear" factors into account to a greater extent than its peers. During the value equity rally between 2003 and 2006 after the Dot-com bubble, Arrowstreet lagged behind peers such as Acadian Asset Management and LSV Asset Management when it came to performance. However, when it came to a volatile market cycle such as the 2008 financial crisis, Arrowstreet had a much stronger performance over its competitors.<ref name=":0"/>
With regards to stock selection, the investment team at Arrowstreet would use computer models to go through thousands of stocks and rank them by attractiveness based on selected criteria. For the core global equities fund, the team narrowed down the selection to 150-200 stocks.<ref name=":0" /><ref name=":1" /><ref name=":3" /><ref name=":2" />
In 2008, Arrowstreet repurchased shares from outside owners to become 100% employee owned.<ref name=":3" />
In March 2011, former Treasury official, Anthony Ryan left his position of chief administrative officer at Fidelity Investments to join Arrowstreet. Ryan who previously worked with Arrowstreet's co-founders at PanAgora now serves as the CEO of Arrowstreet after Clarke stepped down from his position as CEO in 2014.<ref name=":3" /><ref>{{Cite web |last=Appell |first=Douglas |date=March 22, 2011 |title=Fidelity's Ryan to join Arrowstreet |url=https://www.pionline.com/article/20110322/ONLINE/110329981/fidelity-s-ryan-to-join-arrowstreet |access-date=August 14, 2023 |website=Pensions & Investments |language=en}}</ref>
Arrowstreet maintains a low profile and its clients have stated the investment process of the firm is like a black box as it is difficult to ascertain in detail how the firm operates.<ref name=":0" />
==References== {{Reflist}}
==External links== * {{Official website| https://www.arrowstreetcapital.com}} {{hedge funds}} {{authority control}}
Category:1999 establishments in Massachusetts Category:Companies based in Boston Category:Financial services companies established in 1999 Category:Investment companies of the United States Category:Asset management companies