Avondale Partners buys into asset management

US-based investment bank Avondale Partners will enter into the asset management business, buying a 50 per cent stake in Conquest Capital Management, the bank has announced.

Conquest Capital Management manages the 'Bonanza Fund' hedge fund, a long/short domestic equity hedge fund, which invests in small- and mid-capitalisation companies, emphasising fundamental research.

Pat Shepherd, Avondale Partners senior managing partner, said that the firm hoped to continue the impressive performance of the fund.

"We have been impressed with the fund's track record over the last three years, with the total net returns to investors in excess of 40 per cent," he said.

Mr Shepherd also added that the fund would be the first product offered by Avondale Partners to non-institutional investors.

"Our primary investors will be high net worth individuals, family offices and small endowments and institutions," he said.

The move by Avondale to buy into the asset management market represents the increasing interest of the financial sector in asset management, and hedge fund management in particular.

Although regarded as riskier than more traditional investment options, the high returns from hedge funds recorded in recent months has attracted increased investment, typically from wealthy private investors.

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