Arrowpoint Partners, the investment firm co-founded by former Janus Capital Group Inc. (JNS) fund managers, will buy Aster Investment Management Co. to add $2.9 billion in mutual-fund assets.
Brian Schaub and Chad Meade, hired from Janus by Arrowpoint in May, will manage the $2.1 billion Meridian Growth Fund (MERDX), the company said yesterday in a statement. The deal is expected to be completed in the third quarter, pending approval by fund boards and shareholders. Terms weren’t disclosed.
“In terms of culture and research and process, this is a very complementary acquisition,” David Corkins, co-founder of Denver-based Arrowpoint, said in an interview. “We expect the integration will be seamless.”
Arrowpoint, started in 2007 by Corkins and Karen Reidy, also a former Janus manager, oversees $2.2 billion in separate accounts and limited partnerships, according to its website. Other former Janus employees at the firm include portfolio managers Minyoung Sohn and Tony Yao, and Chief Operating Officer Rick Grove.
Arrowpoint will pay for Larkspur, California-based Aster from available capital, Corkins said.
Schaub and Meade, who specialize in investing in small and medium-sized companies, made the $4.9 billion Janus Triton Fund that firm’s best stock fund in the five years through May 10, returning an annual average of 12 percent and beating 98 percent of competing funds, according to data compiled by Bloomberg.
Meridian Growth has returned an annual average of 10 percent while beating 95 percent of rival funds over the past five years. The firm was managed by Aster’s founder, Richard Aster Jr., until his death at 71 in February 2012, Corkins said.
James England will continue to manage the $719 million Meridian Value Fund and the $29 million Meridian Equity Income Fund, Corkins said.
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