Hedge fund-of-fund managers Strathmore Capital and Saguenay Capital will merge this summer to create Saguenay Strathmore Capital, confirmed Stephen J. Harper, Strathmore's founder, managing partner and chief investment officer.
The deal is a “growth merger,” rather than an acquisition by Strathmore Capital, Mr. Harper said in an interview from his office in London.
Strathmore managed $1.4 billion as of May 1 in customized European-focused hedge fund-of-funds separate accounts, all for institutional clients, while Saguenay Capital, based in Purchase, N.Y., managed $592 million as of May 1 in U.S.-focused commingled and customized separate account hedge funds of funds. About one-third of Saguenay's clients are institutional investors, Mr. Harper said.
At Saugenay Strathmore Capital, Mr. Harper will serve as CEO; Brian Walsh, managing member and chief investment strategist at Saguenay Capital, will be chairman and CIO; Emlyn Palmer, a Strathmore partner and chief operating officer, will be COO at the new firm; and Saguenay employees David Dobell, managing member-fund selection/relations, and John Murphy, managing member and chief operating officer, will be co-heads of research.
The merger is “completely synergistic,” Mr. Harper said, and “fast-tracks” the company's move to broaden its geographic investment focus. He said Strathmore's institutional clients had asked the company to expand its investment strategy to include more U.S. hedge fund managers, while Saguenay's portfolio managers were looking to invest more in Europe.
The deal is expected to be completed in July. The firm's partners will own 100% of the firm. No layoffs are planned, Mr. Harper stressed.