PanAgora Asset Management

PanAgora Asset Management (PanAgora) is an American investment management firm based in Boston. The firm is noted for its usage of quantitative analysis in its approach to investing.[2][3][4] It is a direct subsidiary of Putnam Investments and its ultimate parent is Power Financial.[5]

PanAgora Asset Management, Inc.
TypeSubsidiary
IndustryInvestment Management
Founded1989 (1989)
Founders
  • Richard A. Crowell
HeadquartersOne International Place, Boston, Massachusetts, U.S.
Key people
Eric Sorensen (President and CEO)
AUMUS$ 44 billion (March 31, 2022)
Number of employees
126 (2022)
Parent
Websitewww.panagora.com
Footnotes / references
[1]

Background

PanAgora was founded in 1989 by Richard A. Crowell.[2][3] Crowell is considered to be one of the early pioneers of quantitative investing.[2][3] When the firm was founded, Crowell made sure all of its strategies were quantitative.[2] However later on the firm also incorporated the use of behavioral economics to perform analysis.[2][6]

PanAgora originally was a 50-50 joint venture between Shearson Lehman Brothers and Nippon Life.[7][8]

In 1997, Putnam Investments acquired 50% of PanAgora from the shareholder now named Lehman Brothers.[7][9][10]

On August 22, 1998, Crowell died from cancer at 57.[8]

PanAgora opened an office in London in 1990 which oversaw around $800 million in assets, mainly for European pension funds.[7][10] However by 1998, the London office was closed due to lack of profitability. [7][10]

PanAgora and DZ Bank formed a joint venture called DG PanAgora in 1998.[7][10] PanAgora exited the joint venture in 2008 by selling its stake to Union Investment, the investment arm of DZ Bank.[11]

In 2004, Eric Sorensen joined PanAgora from Putnam Investments and is currently the president and CEO of the firm.[12] In the same year, Putnam Investments acquired an additional 30% stake of PanAgora from Ippon Life increasing its holding to 80%.[13] In 2018, Putnam Investments acquired the remaining 20% stake of PanAgora from Nippon Life.[14]

PanAgora is directly owned by Putnam Investments which is owned by Great-West Lifeco and ultimately owned by Power Financial. [5] On May 31 2023, Great-West Lifeco announced that Franklin Templeton Investments would acquire Putnam Investments for $925 million. PanAgora would not be included in the acquisition and would remain under Great-West Lifeco.[15][16][17]

The term Risk Parity was coined by Edward Qian in a paper written in 2004.[4][18] Qian is currently Chief Investment Officer of Multi Asset Investments at PanAgora.[4][18]

References
  1. "Form ADV" (PDF). SEC. Retrieved 23 November 2022.
  2. "AN OPTIMIST IN THE WILDERNESS". 2020-10-18. Archived from the original on 2020-10-18. Retrieved 2022-11-23.
  3. "Robert Korajczyk wins Crowell Prize for stock return study - Kellogg School of Management". www.kellogg.northwestern.edu. Retrieved 2022-11-23.
  4. "Quant Famed for Ray Dalio-Like Trades Has Battle Plan for Stocks". Bloomberg.com. 2019-02-27. Retrieved 2022-11-23.
  5. "Power Corporation of Canada | Organization Chart". www.powercorporation.com. Retrieved 2022-11-23.
  6. Journal, Bernard Wysocki Jr Staff Reporter of The Wall Street (1996-12-04). "Panagora Tests New Theory Of Irrational Stock Buying". Wall Street Journal. ISSN 0099-9660. Retrieved 2022-11-23.
  7. "PANAGORA GIVES UP ON LONDON". Pensions & Investments. 2006-12-13. Retrieved 2022-11-23.
  8. "CROWELL LOSES CANCER BATTLE". Pensions & Investments. 2006-12-13. Retrieved 2022-11-23.
  9. "PANAGORA'S CLIENTS CHEER PUTNAM LINK". Pensions & Investments. 2006-12-13. Retrieved 2022-11-23.
  10. Newswires, Sylvia BettermannDow Jones (1998-11-17). "PanAgora Asset Management To Scale Back Its U.K. Office". Wall Street Journal. ISSN 0099-9660. Retrieved 2022-11-23.
  11. "Putnam unit to exit German fund joint venture". Reuters. 2008-12-18. Retrieved 2022-11-23.
  12. Grene, Sophia (October 3, 2010). "Eric Sorensen: chief pilot of quant models". www.ft.com. Retrieved 2022-11-23.
  13. "Putnam Raises Stake In PanAgora To 80% And Eyes Japanese Institutional Market - Global Custodian". www.globalcustodian.com. Retrieved 2022-11-23.
  14. "Nippon Life to make Nissay Asset Management fully owned unit". www.spglobal.com. Retrieved 2022-11-23.
  15. "Great-West Lifeco announces sale of Putnam Investments to Franklin Templeton". www.newswire.ca. Retrieved 2023-06-08.
  16. Masters, Brooke (2023-05-31). "Franklin Templeton to buy Putnam Investments for more than $1bn". Financial Times. Retrieved 2023-06-08.
  17. "Great-West Lifeco announces sale of Putnam Investments to Franklin Templeton". Yahoo Finance. 2023-05-31. Retrieved 2023-06-08.
  18. "Quant Who Coined Risk Parity Says Wall Street Has It Wrong". Bloomberg.com. 2016-09-29. Retrieved 2022-11-23.
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