It is big news for Australia’s hedge fund community, which counts Regal as the top of the tree (followed by a bunch of smaller funds), and for hedge funds globally. There’s been very few hedge funds start with more than $US1.5 billion in capital, which is where Catalyst is expected to begin.
It’s also big news for the big institutional equities houses that will be keen to secure Catalyst’s business. Pavendranathan is known for an active and unique investment style, that is a mixture of quantitative trading, macro themes and fundamental investing, which is sure to keep brokers busy.
Of course, brokers got a good glimpse of Pavendranathan’s investing and trading style in the past three years, during his time starting and running Regal’s highly successful Global Alpha Strategy.
Catalyst is expected to start recruiting and will need to hire investment, operations, technology and compliance staff if it is to get up and running in the coming months as expected.