Paul Marshall: Winning through Innovation
Money can be made by following the methods of others, no doubt. To become a financial whale, however, requires some form of innovation; Paul Marshall has demonstrated this through a system that is often imitated but never equaled.
For over 20 years, Mr. Paul Marshall has been the co-founder and Chairman of London-based Marshall Wace LLP, one of Europe’s largest hedge-fund groups. A global asset manager offering a diverse set of alternative, long-only and bespoke investment solutions to a broad range of investors, Marshall Wace manages more than $30 billion and operates from fund management offices in London, New York, and Hong Kong.
With an M.B.A. from INSEAD Business School and a B.A. (Hons) in History and Modern Languages from St John’s College, Oxford University, Paul Marshall took on the roles of Director and Chief Investment Officer for European Equities at Mercury Asset Management in 1985. While at Mercury Asset Management, Mr. Marshall was responsible for a team of 15 managing $12 billion in European equities.
In 1997, Paul Marshall and Ian Wace established Marshall Wace; this firm shot to fame in 2002 with the introduction of their highly successful and proprietary Trade Optimized Portfolio System (TOPS) strategies. Funds managed by Marshall Wace have won multiple investment awards, and the firm has become one of the world’s leading managers of equity long/short strategies.
A truly singular innovation, the TOPS method polls the investment ideas of equity sell-side practitioners (generalists, sector specialists, strategists, and economists) around the world and uses algorithms to analyze and optimize this information into liquid equity portfolios. Some firms have attempted to replicate Marshall and Wace’s TOPS system, but none have achieved the outstanding results of the original investment strategy. And speaking of unique results, Paul Marshall also manages the award-winning and highly profitable Eureka (Euro) Fund Limited.
Paul Marshall has proven himself as a hedge-fund influencer in numerous ways: along with his duties at Marshall Wace, he is a founding and current member of the Hedge Fund Standards Board, now called the Standards Board for Alternative Investments. Paul also serves as a member of the Alternative Investment Management Association (AIMA).
A pattern of winning through innovation is quite rare, and is hard-fought and earned over time. It’s a way of life, though, for Paul Marshall – and that’s exactly how whales are made.