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XL Group buys minority stake in next generation trading platform Ada Investment

Friday, September 12, 2014
Opalesque Industry Update - Ada Investment Management LP, a research-driven investment manager offering alternative equities-based investment programs to institutional investors, today announced that an affiliate of XL Group plc (NYSE:XL), a global insurance and reinsurance company, has acquired a minority stake in Ada Investments. In conjunction with this transaction, XL has made a sizable capital commitment to the firm’s flagship global equity market neutral strategy, which is designed to enhance client portfolios by focusing on delivering differentiated returns characterized by low correlations to major market indices and other fund managers.

Ada Investments was founded by Dr. Vinay Nair, a former professor at the Wharton School of Business, and is backed by a group of seasoned investment professionals. Ada Investments’ approach, which grew from Dr. Nair’s original academic investigations, utilizes fundamental and behavioral insights to identify and test return drivers in equity markets through systematic application of proprietary research.

Specifically, the firm uses a collection of investment themes and indicators across both developed markets and emerging markets that are each used to capture a different source of return. Ada Investments aggregates these proprietary investment themes, which have been vetted over time in multiple markets, into portfolio strategies with differentiated returns.

Dr. Nair said: “We are delighted to have the opportunity to expand our business through the investment of a seasoned institutional investor that has an outstanding reputation and a long term view. This strategic investment provides an important validation of our investment process and adds XL’s business-building experience to Ada Investments’ current capabilities.”

Thomas Burke, EVP & Head of Alternatives for XL, said: “The partners of Ada Investments have a wealth of experience in quantitative investment strategies based upon fundamental insights about companies and markets. We are very enthusiastic about our relationship with Dr. Nair and the team he has assembled at Ada.”

Ada Investments is an SEC-registered investment manager offering alternative equities-based investment programs to institutional investors. Ada's 17-member global team includes 12 research professionals, including several former professors at leading business schools. The firm is based in New York and has a presence in Mumbai, India and Rio de Janeiro, Brazil.

Ada’s investment approach centers around creating a collection of investment themes and indicators across both developed markets and emerging markets that are each used to capture a different source of return. Ada aggregates these proprietary investment themes, which have been vetted over time in multiple markets, into portfolio strategies with differentiated returns.

Watch Dr. Vinay Nair speak to Opalesque.TV about his next generation trading platform, the “systematic equivalent of prop desk”: www.opalesque.tv/hedge-fund-videos/Dr_Vinay_Nair/1

XL Group plc (NYSE:XL), through its subsidiaries, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. XL is the company clients look to for answers to their most complex risks and to help move their world forward.

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