3EDGE Asset Management LP, a new Boston-based wealth manager founded by one of the pioneers of exchange traded funds, has entered the Orange County market by hiring a veteran of Pacific Investment Management Co.
Jonathan Cressy, previously a senior vice president at PIMCO, now runs 3EDGE’s Irvine office, its first in California. The managing director is responsible for building 3EDGE’s business with wealthy families, registered investment advisers, bank trust departments and institutional clients on the West Coast.
“Jon had 15 years’ experience at PIMCO, where he helped them expand to different client bases,” said Steve Cucchiaro, founder and chief investment officer at 3EDGE. “Jon is instrumental in connecting me with his network through Orange County.”
Although the firm, started early last year, has a relatively small $750 million in assets under management, Cucchiaro is well known on Wall Street. ETF.com called him a “legend,” and CNBC said Cucchiaro is “the most successful ETF strategist ever.”
Beginnings
In 1994, he founded Windward Investment Management Inc. and was one of the first to show how ETFs could be used to diversify across asset classes. He built the firm to $3.9 billion in assets under management and in 2010 sold it to Charles Schwab for $150 million in cash and stock. He previously sold companies to Lotus Development in the 1980s and Oracle Corp. in the 1990s.
By the time Cucchiaro left Charles Schwab in 2014, the renamed Windhaven Investment Management had $19 billion in assets under management.
He started 3EDGE early last year after his noncompete clause ended. Windward’s strategy resonated well in California, Cucchiaro said.
“We have a golden opportunity to revisit and offer our services.”.
The company name refers to seeking an edge among economic factors, market fundamentals and investor behavior. The firm applies a multiplayer game theory—similar to what war planners do—to better understand how new players like central banks are affecting the market. The insights are built into ETFs to find undervalued investments, no matter the type—from equities to fixed income to emerging markets—anywhere in the world.
“We’ve been known for building portfolios with attractive returns that protect clients from downside risks,” Cucchiaro said.
Since 2003 Cressy worked at PIMCO, where he helped build distribution across independent investment advisers, bank trust departments, and retail broker-dealer channels. He holds a B.A. in communications and an MBA from Boston College.
Both Cucchiaro and Cressy, who have known each other for more than 20 years, are sailors. Cucchiaro has won many competitions, including a gold medal at the 1979 Pan American Games.
