CQS is a London-based global multi-strategy credit-focused

asset management Asset management is a systematic approach to the governance and realization of all value for which a group or entity is responsible. It may apply both to tangible assets (physical objects such as complex process or manufacturing plants, infrastr ...

firm. It launched its first credit strategy in 2000 and now manages a range of investment mandates. Specific investment capabilities include convertibles, asset backed securities,

credit Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt) ...

loans In finance, a loan is the tender of money by one party to another with an agreement to pay it back. The recipient, or borrower, incurs a debt and is usually required to pay interest for the use of the money. The document evidencing the debt ( ...

, structured credit, and

equities Stocks (also capital stock, or sometimes interchangeably, shares) consist of all the shares by which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporation in proportion t ...

. Their investors include pension funds, insurance companies, sovereign wealth funds, funds of funds, endowments and foundations, and private banks. CQS had successful bets on the US

subprime In finance, subprime lending (also referred to as near-prime, subpar, non-prime, and second-chance lending) is the provision of loans to people in the United States who may have difficulty maintaining the repayment schedule. Historically, subpr ...

mortgage market.

History

CQS was founded in 1999 by

Michael Hintze Michael Hintze, Baron Hintze, (born 27 July 1953) is an Australian-British businessman and philanthropist, based in the United Kingdom. Early life After his grandparents fled from Russia following the 1917 Bolshevik revolution, he was born in ...

, who serves as the Group Executive Chairman and Senior Investment Officer. Prior to establishing CQS, Hintze was European Head of Convertible Bonds at

Credit Suisse First Boston Credit Suisse First Boston (also known as CSFB and CS First Boston) was the investment banking affiliate of Credit Suisse headquartered in New York. The company was created by the merger of First Boston Corporation and Credit Suisse Group in 1 ...

(CSFB) and Head of UK Equity Trading and European Convertible Bond Trading at

Goldman Sachs The Goldman Sachs Group, Inc. ( ) is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered in Lower Manhattan in New York City, with regional headquarters in many internationa ...

. In May 2012, it was reported to be on the opposite side of the infamous JPMorgan trade by Bruno Iskil, in which

JPMorgan JPMorgan Chase & Co. (stylized as JPMorganChase) is an American multinational finance corporation headquartered in New York City and incorporated in Delaware. It is the largest bank in the United States, and the world's largest bank by mar ...

lost more than $2billion because of its massive position in U.S. credit derivatives. As of December 2018, CQS had $18.1 billion in assets under management. According to

Bloomberg Bloomberg may refer to: People * Daniel J. Bloomberg (1905–1984), audio engineer * Georgina Bloomberg (born 1983), professional equestrian * Michael Bloomberg (born 1942), American businessman and founder of Bloomberg L.P.; politician a ...

, CQS's main fund gained 30.4% in 2016, posting its best annual returns since 2012. In April 2020, it was reported CQS's Directional Opportunities Fund posted its biggest ever 30% decline in March. In November 2023, it was announced that

Manulife Manulife Financial Corporation (French language, French: Financière Manuvie) is a Canadian multinational insurance company and financial services provider headquartered in Toronto, Ontario. The company operates in Canada and Asia as "Manulife" ...

would acquire CQS. The transaction closed on April 3, 2024.

Office locations

CQS has offices in London, Hong Kong, New York, and Sydney. Affiliates within the group are regulated by the Financial Conduct Authority (FCA) in London, the Securities and Futures Commission (SFC) in Hong Kong and the Australian Securities and Investments Commission (ASIC) in Sydney, and registered with the Securities and Exchange Commission (SEC) in New York. CQS opened its Sydney, Australia office in 2010 and expanded its presence in the country in 2011.

References

{{Reflist

External links

Official website
Hedge fund firms in the United Kingdom 2024 mergers and acquisitions Institutional investors