Credit Suisse quant team to break links with traditional markets
Credit Suisse Asset Management will launch a systematic trading group to provide trading strategies that achieve risk-adjusted returns with a low correlation to traditional markets. The group will be made up of 20 traders, research analysts and front office personnel, and will at first manage $500m of assets, the firm said. Mika Toikka, the former head of risk and strategy for proprietary trading at Credit Suisse's investment bank, will manage the group. The group will build on quantitative products already used by Credit Suisse Asset Management, the firm added.

A new systematic trading group will offer Credit Suisse Asset Management clients access to trading strategies that will seek to achieve risk-adjusted returns with relatively low correlation to traditional markets.

The group will be managed by Mika Toikka, formerly the global head of risk and strategy for proprietary trading in Credit Suisse's investment bank.

The firm said that the new group will build on Credit Suisse Asset Management's existing quantitative products, initially managing US$500 million of assets, including Credit Suisse seed capital and assets from some of Credit Suisse's existing quantitative platforms. The group is expected to consist of approximately 20 traders, research analysts and front office personnel offering a set of strategies across multiple asset classes.

“We have started to bring together a team of traders from within [Credit Suisse] Asset Management with a group of hedge fund managers and former proprietary traders to build on Asset Management's quantitative product line to offer our clients access to systematic trading strategies,” said Toikka.

Morgan Stanley announced earlier this year that it was planning to carve out its in-house quantitative trading unit in 2012, in preparation for dealing with the US Volcker Rule, which banned principal trading activity for US bank holding companies.

In September, J.P. Morgan also confirmed plans to transfer its prop trading teams within its equity, emerging markets and structured credit businesses to a new alternative investment management group for clients of J.P. Asset Management.