Listed asset manager Polar Capital Holdings today announced the completion of the acquisition of the International Value and World Value equity team led by Pierre Py and Greg Herr from the Los Angeles-based asset manager First Pacific Advisors, LP.
A new joint venture, Phaeacian Partners LLC (“Phaeacian”), has been established with two 1940 Act mutual funds – the FPA Paramount Fund, Inc. and the FPA International Value Fund – have been reorganised into the Phaeacian Global Value Fund and the Phaeacian Accent International Value Fund. Phaeacian assets under management at the transition total $545m (as at the end of September 2020)
The completion of the transaction provides the managers and Polar Capital with the opportunity to build Phaeacian into a significant presence in the International (global ex-US) and Global equity sectors.
The managers have a decent performance record. Over five years to end September 2020, the FPA International Value Fund is five-star rated by Morningstar and the FPA Paramount Fund is four-star rated. Additionally, International Value is the top ranked fund in its Morningstar sector over three and five years and holds a Morningstar Bronze rating. All performance track records and ratings have been ported across to Phaeacian.
Gavin Rochussen, CEO, Polar Capital said in a statement: “The establishment of Phaeacian Partners is the next step in Polar’s strategy to build out our international and global products and our institutional presence in North America.
“The strategies that Pierre and Greg will manage for us, as well as their investment philosophy, are a natural fit with Polar Capital’s investment-led approach to managing our clients’ money. We will provide Phaeacian with a best-in-class operational structure, allowing them the investment autonomy to build on their impressive track record and proven, repeatable investment process. They are an excellent addition to Polar Capital, and I am looking forward to working with them.”
Pierre Py and Greg Herr added: “We are thoroughly looking forward to working with Polar Capital. The partnership allows us to focus on generating exceptional, investment-led returns for our clients, while benefiting from the outstanding business support Polar Capital can provide. It is an ideal fit for us in terms of operating environment and culture.”