Ascalon Capital Managers, whose boutique asset managers manage about $4.5 billion, may add as many as two Asian hedge funds to its asset managers next year.
Sydney-based Ascalon, owned by Westpac Banking Corp., this month took a minority stake in soon to be launched Hong Kong-based event driven, mergers and acquisitions fund Athos Capital Ltd. Ascalon now has eight boutiques under its umbrella.
“Our focus in 2012 is Asia,” says Andrew Landman, chief executive of Ascalon. There may be “one or two more” firms joining the group that may be “long-short, greater China focused” hedge funds, he says.
Founded in 2001, Ascalon has been fundamentally changed by Landman. Two years ago he began a process of getting rid of some boutiques. Landman and head of business development Jason Collins decided to keep only “high conviction” and “absolute return” asset managers.
Ascalon, which employs 10 people, takes between a 25 per cent and 45 per cent stake in its asset managers. Westpac provides seed funding for the funds as well as business development, compliance and accounting.
Among the funds Ascalon has stakes are Alleron, whose Australian stocks portfolio is highly concentrated and H3, a managed futures investment firm.