Acquisitive Ascalon eyes Greater China managers

Acquisitive alternative fund incubator Ascalon Capital Managers is setting its sights on adding to its stable of managers, notably in Greater China, after taking a stake in a global equity hedge fund.

Sydney-based Ascalon recently added to its range of Australian partners by acquiring a 35% stake in Morphic Asset Management, which had A$50 million ($46.46 million) in assets under management as at press time. Financial details of the transaction were not disclosed.

Ascalon is wholly owned by Westpac Banking Corporation. As is its style, it has taken a stake in Morphic and immediately invested into its flagship global opportunities fund.

“While we have a range of equity managers in our portfolio, Morphic AM’s fund is for now our only global equity strategy and hence fits well with our existing partner managers,” noted Chan.

Morphic is the fourth manager in Australia that Ascalon has partnered, alongside long/short manager Regal Funds Management, specialist Australian equities house Alleron Investment Management and relative value manager Above the Index Asset Management.

Chuak Chan, Ascalon’s Hong Kong-based chief executive, says the next move by Morphic will be to launch a Cayman Islands fund in a drive to attract institutional investors outside of Australia, including pension funds and family offices.

Ascalon has also invested in Singapore-based Asian fixed income long/short firm RV Capital Management and Hong Kong-based event-driven/merger arbitrage manager Athos Capital.

Chan tells AsianInvestor that Ascalon is interested in partnering more managers, noting that those specialising in Greater China would be of particular appeal.