Does everyone have to lose money in a recession? This was the question on the mind of former Mellon Investments CIO as he launches BC-GUMPS
BOSTON–(BUSINESS WIRE)–David Daglio, former Chief Investment Officer of Mellon Investments Corp. announced the formation of BC-GUMPS, an asset management business purpose-built to deliver targeted solutions with asymmetric payoff. Equipped with processes developed by its research team and through a partnership with Valens Research, a Cambridge, MA based global institutional research platform, the firm is launching an integrated platform designed specifically to identify and deploy strategies aimed at areas of the market experiencing dislocation or severe mispricing.
In short, BC-GUMPS is built to seize time-sensitive opportunities with high payoff and low risk.
In his role as a portfolio manager manager, Daglio was frequently recognized as one of the industry’s top performers and most disciplined investors and won awards including Institutional Investor Best Buy-Side Manager, Forbes Top Investor, and numerous Lipper awards for superior performance. He is joined by Corey Griffin, formerly CEO of The Boston Company, and Dale Dutile, a senior member of Daglio’s Opportunistic Value team. Kyle Pinkerton, the former lead research architect at Valens Research, also joins the team.
“After 25 years in the investment business, it’s beyond exciting for me to start with a fresh sheet of paper, building a firm which will afford us the opportunity to deliver value to clients regardless of the macro environment,” said Daglio.
So, how does one make money in a recession? Daglio believes he has a solution.
“BC-GUMPS’ first fund will consist of a concentrated portfolio of credit default swap positions. Considering the extended length of the current business cycle and nascent economic challenges, we see substantial and imminent upside with such a portfolio. Taking into account what we believe is widespread mispricing of credit, our strategy is designed to realize that upside without exposing our clients to the risk of equivalent loss.”
The inaugural fund will launch in the second quarter of 2023 for qualified investors, and will be limited to $250 million in capacity.
This is an acronym used by pilots to make sure they follow repeatable and tested processes every time they land a plane, de-risking an otherwise uncertain situation. BC-GUMPS is founded on the principle of using sound, repeatable processes to do the same in the uncertain world of asset management.
BC-GUMPS is an asset management business committed to delivering targeted solutions to sophisticated investors. BC-GUMPS is launching a platform that will deploy strategies aimed at areas of the market experiencing dislocation or severe mispricing where there is opportunity to create an asymmetric payoff for its clients.
For more information, visit https://bc-gumps.com/.