Hamon Investment Group Buys Stake in H.K. Fund Manager Doric

By Bei Hu

Feb. 11 (Bloomberg) -- Hamon Investment Group, an Asia- focused money manager minority-owned by Bank of New York Mellon Corp., bought a stake in Hong Kong-based hedge fund manager Doric Capital Corp.

Doric managing director Howard Wong, Rajesh Ranganathan and Jeff Liu formed an “equal partnership” with Hamon after a management buyout, Hong Kong-based Doric said in an e-mailed statement late yesterday. Hamon, also located in Hong Kong, injected new capital into Doric, said the statement.

Asian hedge fund managers are seeking alliances with larger institutions after tumbling markets triggered the industry’s worst return in history last year, led investor to withdraw money and slowed new fundraising.

The Eurekahedge Asian Hedge Fund Index retreated 21 percent last year, the first annual loss since records began in 2000. Assets managed by Asian hedge funds shrank 36 percent, according to Chicago-based Hedge Fund Research Inc.

The partnership with Hamon would allow Doric to reach out to “a much broader client base,” Wong said in the statement. Wong was not immediately available for comment today.

Hamon will help develop the strategic direction of Doric and its marketing, the statement said. Wong will take charge of the fund manager’s day-to-day operations and investment with Ranganathan and Liu, it added.

Michael Nock, who founded Doric in 1999, is retiring from the company, though will retain a stake in the firm, stay on its board as a non-executive director and act as an adviser, the statement said.

Doric manages the Doric Focus Fund and Doric Asia-Pacific Small Cap Fund, the statement said. It managed $400 million in March 2008, it said in a statement then. A more updated figure was not immediately available.

Hamon was established in 1989 and focuses on trading stocks in Asia. It is majority-owned by its management. Bank of New York Mellon bought a minority stake in 1998, according to Hamon’s Web site.

To contact the reporter on this story: Bei Hu in Hong Kong at bhu5@bloomberg.net