Ascalon Capital Managers Ltd., a company owned by Westpac Banking Corp. (WBC) that invests in hedge- fund managers, bought a 30 percent stake in Singapore-based RV Capital Management Pvt as it expands its Asian investments.
The acquisition includes an investment in RV Capital’s flagship Asia Opportunity Fund, which bets on rising and falling securities in the region’s rates, credit and foreign exchange markets, Ascalon said in an e-mailed statement.
The latest investment was Ascalon’s third in Asia, where the shrinkage of funds of hedge funds has left its predominantly small managers starving for capital. Almost 54 percent of Asian hedge funds oversee less than $50 million of assets, according to Singapore-based Eurekahedge Pte, making them too small to attract capital from international institutions which prefer larger managers.
“RV Capital is led by experienced investors who have operated at the highest level for many years,” Chuak Chan, Hong Kong-based chief executive officer of Ascalon, said in the statement. “We believe RV Capital is poised for strong future growth.”
Ascalon opened an office in Hong Kong in 2011, expanding to take advantage of the region’s economic growth. It last year took a 30 percent equity stake in Singapore-based Canning Park Capital, a long-short equity fund started in July 2010. That added to a 35 percent stake in Hong Kong-based Athos Capital Ltd., an event-driven hedge fund manager and its first investment in the region in December 2011.
RV Capital was set up in 2011 by Ranodeb Roy and Vickram Mangalgiri, according to the statement. The Ascalon investment took its assets to $50 million, Roy said in a telephone interview from Singapore, declining to give the monetary value of the Ascalon investment.
RV Capital’s macro hedge fund returned 21 percent last year and 5.2 percent in the first two months this year, according to an investor newsletter. It outperformed the Eurekahedge Asia Macro Hedge Fund Index, which gained 4 percent last year and 2 percent in the first two months this year.
Roy was once Asia-Pacific head of fixed-income at Morgan Stanley (MS:US) where his responsibilities also included rates, foreign exchange, structured credit and special situations, according to the statement. Mangalgiri worked in jobs including asset management, trading, structuring and risk management at organizations including Pacific Investment Management Co., manager of the world’s largest bond fund better known as PIMCO, Bank of America Corp.’s Merrill Lynch & Co. unit and Goldman Sachs Group Inc., it said.
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