WHV Investments Inc.'s assets under management have plummeted to $6.8 billion as of June 30, down 48% from two years earlier.
Most of the drop came in the firm's flagship international equity strategy, which accounts for $6.1 billion, or about 90% of the firm's remaining assets. That strategy had more than $10 billion as of June 30, 2013, data from eVestment LLC show.
Andrew Turner, president and CEO of San Francisco-based WHV Investments, acknowledged in an interview that poor performance in that strategy led to the asset drain.
“I don't think I know of a strategy that hasn't ever been on a bad performance run, and we're on one,” Mr. Turner said.
The strategy has seen $1.8 billion in net outflows in the period between Dec. 31, 2012, and June 30, 2015, according to eVestment data.
Mr. Turner, who took over the helm at WHV in January 2013, said he is confident the international team — led by Richard Hirayama, managing member and senior portfolio manager — will regain its footing.
For now, the asset decline has pushed Mr. Turner further away from his goal of turning WHV into a midsize firm. In a 2013 interview with Pensions & Investments, Mr. Turner said he wanted to build WHV's assets under management to between $50 billion and $100 billion within three years.
As part of that effort, Mr. Turner has been implementing a plan to acquire stakes in other money management firms and then entering into a subadvisory arrangement with the firms.
Last year, WHV acquired a 15% stake in money management firm EAM Investors LLC in Cardiff-by-the Sea, Calif., branding its small-cap equity funds as joint WHV/EAM offerings.
WHV made the investment in EAM, which has $1.4 billion in assets under management, alongside Northern Lights Capital Group, the Seattle buyer of money management firms. (Mr. Turner used to be the chairman of Northern Lights, which since has merged with Treasury Group Ltd. in Australia.)
WHV also purchased last year an undisclosed stake in Acuity Capital Management LLC, with $138 million under management. Acuity focuses on corporate credit investing and is based in Greenwich, Conn.
Mr. Turner also is expanding WHV's investment staff.
Last month he brought on a New York City-based international/global equity investment team from Victory Capital Management Inc.
He also is negotiating with another investment team to join WHV but said any additions likely won't happen this year. He would not provide specifics.