Based in Chicago, Astor is a registered investment adviser with the Securities and Exchange Commission (SEC). The firm has 13 employees and approximately $560 million in assets under management.
Founded by Managing Partner Robert N. Stein in 2001, Astor Asset Management seeks to identify fundamental economic shifts to provide retail and institutional investors with capital appreciation while managing risk in diverse market conditions. According to the announcement, the firm utilizes proprietary macro economic models to construct portfolios of exchange-traded funds (ETFs) which are offered through advisers within separately-managed accounts (SMAs) and the Astor Long/Short ETF Mutual Fund.
The terms of the agreement include a four-year employment contract for Stein, and approximately $20 million in cash and stock, based on assets under management at the close.
The closing of the acquisition is subject to customary closing conditions and Astor Asset Management advisory client approval. The acquisition is expected to be completed in the fourth quarter of 2010. Upon the close of the acquisition, Astor Asset Management, LLC will operate as a wholly-owned operating subsidiary of Knight Capital Group. “I believe we can help Astor get to the next level while creating a foundation for asset management that contributes stable, recurring revenues to Knight,” said Thomas M. Joyce, Chairman and Chief Executive Officer, Knight Capital Group, in the announcement.