Manager Research

On the 18^th of August 2020 Counterpoint Asset Management (Counterpoint) and Bridge Fund Managers (Bridge) released a joint statement indicating that Counterpoint will be acquiring Bridge with an expected effective date of 1 September 2020. This follows the merger of Counterpoint and RECM earlier in 2020 which we wrote about here. 

For Counterpoint, the rationale behind the transaction, as with the earlier merger of Counterpoint and RECM,  is to build a stronger and more scalable business in an industry facing increasing regulatory and margin pressures. For Bridge, this merger provides them with a new long-term orientated shareholder after a period of difficult investment performance. The combined group will now manage assets of nearly R12bn.

The transaction is still subject to regulatory approval and is only expected to be finalised in September, but the two businesses have agreed, in principal, that Paul Stewart and Linda Eedes will act as joint CEOs to ensure a smooth transition of their respective teams and clients. Bridge and Counterpoint will continue to operate separately for the next couple of months but will gradually integrate until fully merged by the end of the first quarter of 2021. Sam Houlie will lead the combined investment team while Ian Anderson will continue to manage the Bridge ‘Payers and Growers’ and listed property funds.

The earlier merger between Counterpoint and RECM brought together two firms with a similar value philosophy, while Bridge follows their more dividend and income growth focussed Payers and Growers philosophy. There is therefore less of a natural fit between the two investment processes so we will spend time with the team to understand how the different philosophies will be accommodated in the single business.

We will keep you updated on any progress on the transaction and as more details are released around the future of the Bridge funds we have under coverage.