GMO LLC (also known as GMO and Grantham, Mayo, Van Otterloo & Co. LLC) is an American investment management firm headquartered in Boston. The firm takes a contrarian investing and generally bearish approach to the markets and holds the views that assets will revert to the mean. As a result, the firm has successfully called economic bubbles. At its peak in 2007, the firm had $155 billion in assets under management (AUM) although it has declined since.[2]
Outside Boston, the firm has offices in Amsterdam, London, San Francisco, Singapore, Sydney and Tokyo.
Background
Jeremy Grantham, Dick Mayo and Eijk van Otterloo founded GMO in Boston in 1977. Prior to that Grantham and Mayo founded Batterymarch Financial Management in 1969 while Van Otterloo was a former colleague of Grantham. The three all were portfolio managers and GMO was launched as a conservative, value-oriented money management shop although it has expanded since. Since 1996, Van Otterloo has not had a day-to-day money management role and is considered retired while Mayo left in December 2001 to run a hedge fund, Game Creek Capital with his son.[2][3]