Key facts
- Polar Capital CEO Gavin Rochussen is implementing a U.S. expansion strategy.
- The firm aims to attract North American institutional investors like endowments and pensions.
- Polar Capital plans to achieve this by hiring investment teams, recruiting managers, and potentially acquiring firms.
- The asset manager currently holds £10.6 billion ($14.2 billion) in assets, primarily from U.K. and European retail investors.
- The strategy involves building relationships with consultants and establishing U.S.-based investment, client service, and sales teams.
Polar Capital Holdings, a London-based fund manager with £10.6 billion ($14.2 billion) in assets, is embarking on a significant U.S. expansion strategy led by CEO Gavin Rochussen. The firm intends to actively pursue North American endowments and pensions by hiring entire investment teams from competitors, recruiting individual fund managers, and potentially acquiring other investment firms.
Rochussen stated that while the majority of Polar Capital's current assets are tied to retail investors in the U.K. and Europe, the company will now focus more attention on the institutional channel. This involves developing relationships with large, global consultants and building U.S.-based teams for investment, client services, and sales support. The firm already holds a few hundred million dollars from U.S. investors in its hedge funds and offers various equity strategies, including Japan, healthcare, financial services, technology, and U.K. Value.
Analysts have suggested that Polar Capital might pursue bolt-on acquisitions, given its available balance sheet cash and seed capital. Rochussen acknowledged this possibility, stating that while acquisition is not the sole strategy, the firm is well-positioned if a suitable opportunity arises. He also noted that regulatory changes, such as MiFID II, are making it more challenging for smaller asset management firms to establish themselves, creating an opportunity for Polar Capital to attract talented fund managers.
The firm's strategy is to position itself as a 'satellite manager' that adds alpha, rather than a core manager, citing the recent launch of its Automation & Artificial Intelligence fund as an example of the specialized strategies likely to appeal to institutional investors.