Continuum Investment Management, an asset management firm focused on investing in the structured fixed income market, has formed a partnership with Grosvenor Capital Management, one of the oldest and largest global alternative investment managers with over USD22bn in assets under management. 

The Continuum deal is the third strategic partnership entered into by Grosvenor since it launched its current Emerging Manager programme at the beginning of 2012.

Continuum Investment Management was founded by Kevin Scherer, a former managing director and senior portfolio manager at Citadel. Prior to working at Citadel, Scherer co-founded The Midway Group, a mortgage-focused hedge fund, in 2000 and spent eight years with the firm. 

Continuum seeks to capitalise on prepayment and credit-centric market opportunities across residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), and other asset-backed securities (ABS).

Scherer has been joined at Continuum by a team of his colleagues from Citadel, including senior portfolio manager Brian McDonald, chief technology officer Jimmy Rizos, and head of research and development Dr Stephen Cameron, as well as chief operating officer Greg Scarffe from Credit Suisse Prime Services.

Scherer says: "Our integrated multi-strategy platform and experienced team offers investors a single point of entry to a broad opportunity set in securitised products investing.  We are excited about our strategic partnership with Grosvenor Capital Management, and look forward to producing attractive returns for our investors."