Pinnacle Investment Management, a multi-affiliate manager and incubator, is fostering a new boutique focusing on a concentrated Aussie equities strategy. Some of Macquarie Investment Management’s star portfolio managers will lead the new firm from early next year.
Following the success of its launch of the Antipodes Partners take-out from Platinum Asset Management last year, and Antipodes’ subsequent launch of a global LIC, Pinnacle is looking to expand with a range of new boutique strategies for its clients. In September Pinnacle hired David Batty, formerly of third-party distribution firm Heathcote Investment Partners, to drive its business growth in NZ.
Ian Macoun, the chief executive and founder of Pinnacle, said last Friday that the former Macquarie concentrated equities team, led by Patrick Hodgens and Blake Henricks, had a great track record and he was very happy to bring them into the Pinnacle fold. After a period of gardening leave, they would launch the firm in the first half of next year. It is expected that there will be about 10 staff in the research-oriented new firm by its launch date.
Macoun said he was working on ways to provide seed capital for the new firm, whose name is yet to be confirmed, which he did for Antipodes through the purchase of a dormant fund.
Pinnacle last week concluded a raising for a LIC from one of its other competitors, Spheria Asset Management, for a small and micro-cap offering. The LIC market is mushrooming right now because of the demand from SMSF trustees for listed and liquid investment vehicles.
According to a notice to the ASX last week: “Pinnacle confirms that employment agreements have been entered into with a number of specialist Australian equities investment management professionals in anticipation of the establishment of a new affiliate with a high conviction equities focus.
“The new affiliate is anticipated to commence operation upon the expiration of restraints applicable to the individuals under their employment agreements with their former employer. As previously advised, Pinnacle’s strategy is to continue to pursue excellence in its investment management business and to strengthen its portfolio of affiliated asset managers.
“Pinnacle has a strong track record of success in this regard having created and grown eight affiliates to date.”
While the new funds management firm won’t necessarily mimic the style and processes of the team’s past at Macquarie, this document provides an idea about how they are likely to operate. It is unknown whether Macquarie will shut down the old concentrated fund.
Greg Bright is publisher of Investor Strategy News (Australia)