Leading fixed income specialist Ardea Investment Management has launched a new research partnership with the University of Technology Sydney (UTS).
The Ardea + UTS Academic Program will foster innovative and impactful academic research to advance knowledge in finance and further strengthen Ardea’s research capabilities, which is expected to benefit the large boutique manager’s clients.
Through the partnership, Ardea will jointly research projects, and author thought leadership articles with UTS researchers, and will provide industry mentorship to UTS students.
Ardea Head of Research and recently appointed UTS Industry Fellow Dr Laura Ryan will lead the participation by Ardea, with UTS Finance Discipline Group academics Dr Kylie-Anne Richards and Dr Gerhard Hambusch leading UTS’ involvement in the partnership.
The partnership is already bearing fruit, with Ardea and UTS currently investigating machine learning for trade idea identification, climate change and government bond investing, and the LIBOR transition and how it may impact trading opportunities.
Ardea CEO and co-founder Stephen Clout said, “Ardea is thrilled to have this opportunity to work with an organisation of the calibre of the University of Technology Sydney. We believe this partnership will strengthen our offering to clients and enhance our trade idea generation process. It is a key component of our strategic plan to prepare Ardea for a strong pipeline of long-term growth opportunities and ensure we maintain our highest standards of alpha generation,” Mr Clout said.
The partnership follows the appointment of Dr Ryan earlier this year to progressively build a research team to support Ardea’s growing investment capabilities by researching and developing relative value investment strategies.
Ardea’s relative value investment approach targets reliable risk-adjusted alpha that is independent of market direction and exhibits minimal correlation to broader fixed income and equity markets.
Founded in 2008, Ardea is one of Australia’s largest fixed income investment managers, entrusted with managing over $15bn on behalf of clients, including Australia’s most sophisticated institutional investors and a growing retail and wholesale investor base.
The firm maintains majority ownership by employees to foster both long-term alignment of interests with clients and stability of the investment team and is partly owned by leading investment manager, Fidante Partners.
Ardea’s flagship fund, the Ardea Real Outcome Fund, is the top performing fund in Mercer’s Australian Absolute Return Fund category for one year up to 30/06/2020 in terms of gross returns. It is also the top performing fund over three and five years.
The UTS Finance Discipline was one of only four finance departments in Australia to have been awarded the highest possible ranking for research by the national research evaluation framework, Excellence in Research, for Australia in the State of Australian National University Research 2018-19: ERA National Report.