O’Shaughnessy Asset Management (OSAM) has bought back a 10% equity stake from a subsidiary of J.P. Morgan, which it acquired through its purchase of Bear Stearns earlier this year, the firm announced Tuesday.

With this transaction, approximately 89% of OSAM is owned by employees and their immediate family members. Royal Bank of Canada, for which OSAM also serves as a sub-adviser to its family of mutual funds, owns the remaining 11% through an acquisition earlier this year.

Bear Stearns originally acquired the 10% ownership interest in OSAM as a part of the deal that allowed Jim O’Shaughnessy and 13 of his colleagues to leave Bear Stearns Asset Management in July 2007 to start their own firm. While J.P. Morgan will no longer be an equity stakeholder in OSAM, they continue to be a key client of the firm, it notes. OSAM continues to be a manager for the clients of J.P. Morgan through their Bear Stearns Private Client Division.

“We wanted to take advantage of the opportunity to acquire our own equity back because we have a strong belief in the prospects for the growth of our firm. The business landscape has changed since our original deal with Bear Stearns, which opened the door for us to discuss this with J.P. Morgan. At the same time, J.P. Morgan felt that selling the equity stake was the right strategic decision. We feel this is the best outcome for both firms,” said Jim O’Shaughnessy, chairman and CEO. “It is also important to note that our relationship with J.P. Morgan remains very strong, and we continue to maintain a clear commitment to servicing their clients.”