Local hedge fund player, Blue Ink, joins forces with international fund of hedge funds, Octane

Octane Holdings, an offshore specialist alternative investment manager focusing on funds of hedge funds, which has Sanlam as a major shareholder, announced today that it has acquired Cape Town-based hedge fund manager, Blue Ink Investments from its founder, Clifford Warren for an undisclosed sum.

Upon approval by the South African Competition Commission, Blue Ink will be wholly-owned by Octane which currently manages, here and abroad, in excess of $1.3 billion of offshore assets for both private and institutional clients.

Managing Director of Octane for Pan Africa, Duncan Theron says the acquisition is synergistic for both parties as Octane brings global best practice and experience while Blue Ink brings one of the longest and best track records as well as a strong local, private and institutional client base of approximately R2,8-billion under management.

"The deal allows Octane to enter the South African fund of hedge fund market through a well respected player. As a result of the planned closer working relationship between Octane and Blue Ink, we hope to further entrench the already strong position of Blue Ink as a leader in the South African market and as the provider of funds of hedge funds. We also plan to enhance the current South African offering with our tailor made global solutions approach to the local hedge fund industry."

Theron says that via Blue Inks joint venture agreement with Legae Capital, Octane would continue to service and grow the current local institutional client base in South Africa.

He added that Blue Ink would maintain its identity and all staff will retain their current positions.

Commenting on the deal, founder of Blue Ink, Clifford Warren said that further intellectual capital will be added to Blue Ink in the form of access to a wider network of investment professionals and enhanced quantitative risk management systems.

Theron also announced the appointment of Esmarie Strydom as the new Chief Executive Officer of Blue Ink as of October 1, pending the Competition Commission approval. Strydom has extensive management and investment experience at Transnet Retirement Funds and will be working closely with the existing team members of Blue Ink. 

Theron concluded that Octane, in association with the Blue Ink team, was looking forward to positioning the business as the pre-eminent provider of South African Funds of Hedge Funds.

"Collectively the broader group now manages approximately R10 billion of fund of hedge fund monies. We are now in a position to manage our South African clients' local and offshore mandates as a consolidated offering, if required. Octane already has the strongest local presence of any offshore investment manager and combined with the material presence of Blue Ink locally, we make a formidable business team with a  comprehensive range of alternative investment solutions for our clients."