RWC Partners is taking its activism offshore.
The London-based hedge fund will launch a Cayman Islands-domiciled version of its European activist fund, allowing investors from outside of the U.K. access to the strategy, which is up 25% this year and 122% since Hermes Focus Asset Management—which RWC bought in September—launched it in 2009. And they expect a great deal more interest abroad than they have found at home.
RWC hopes to raise as much as US$700 million for the new fund. The current fund manages just US$300 million. If the firm reaches its target, the strategy will reach its US$1 billion capacity.
The RWC activist strategy employs a concentrated portfolio of between 10 and 20 names.
"The approach has generated significant… returns over time, demostrating that it creates value for investors," RWC's Dan Mannix said.
"Whilst the fund will take substantial positions in companies, and is among the top 10 shareholders in the vast majority of its positions, it is worth nothing that the constructive activist approach is no longer dependent on being the largest shareholder," Maarten Wildschut, a co-manager of the strategy, added.