Paul K. Flather joined Palisade Capital Management as portfolio manager of the firm's newest hedge fund, the Palisade Long/Short Alpha Fund.
Palisade Capital acquired Mr. Flather's own hedge fund firm, Hermes Advisors, which had about $18 million under management as of Dec. 31, said Jeffrey D. Serkes, Palisade's chief operating officer, in an interview. Mr. Flather was Hermes' president and portfolio manager.
The new long/short equity fund uses the same fundamental, bottom-up investment style that Mr. Flather used for the past 18 years at Hermes, Mr. Serkes said.
Mr. Flather will continue to work from San Diego, but will spend about a week a month in Palisade's Fort Lee, N.J., offices and will be able to tap Palisade's equity research remotely, Mr. Serkes said.
Palisade Capital manages $3.6 billion, $2.3 billion of which is managed in the firm's flagship active U.S. smidcap equity approaches. The balance is managed in convertible arbitrage, long-only convertible securities and private equity.