American Express Financial Corp. has acquired Dynamic Ideas, a quantitative analysis and portfolio optimization firm founded in 1999. Amex would not disclose the terms of the deal.
The acquisition is part of Amex's goal to expand its quantitative capabilities, said James Cracchiolo, CEO of American Express Financial Advisors.
Amex will use the quantitative models developed by Dynamic Ideas in its retail mutual funds and separate and institutional account portfolios. The models focus on trading, tax-awareness and other investment decisions.
Dynamic Ideas' four employees, Gina Mourtzinou, Steve Kokkotos, George Vetoulis and Thurston Towle, will join Amex as a team responsible for managing the U.S. equity portion of its AXP Managed Allocation Fund, as well as incorporating Dynamic's models into the management of new proprietary separate account strategies and mutual funds.
Dynamic Ideas' co-founder and senior partner Dimitris Bertsimas will serve as a consultant to Amex.