has inked a deal with RBC's Voyageur
to purchase the Tamarack Large Cap Growth
and the Tamarack Value Fund
, which have combined assets of nearly $200 million. The transaction is expected to close in mid to late March.
$200M in AUM from two Cornerstone funds
$35M in AUM from Sym Select Growth Fund
$300M in AUM from four Lindner funds
$299M in AUM from The Henlopen Fund
$200M in AUM from two Tamarack funds
In an interview with The MFWire, Erik Preus
, head of retail asset management at Voyageur and president of Tamarack Funds, said Minneapolis-based Voyageur had hired Barrington Partners
in Boston to help it evaluate the business. From the review came the decision to refocus the firm's sales and distribution efforts.
"Going forward, we'll focus on three areas: money market funds, socially responsible investing, and small- and micro-cap funds," Preus said.
Voyageur started discussions with Hennessy in August or September, he said. It also held talks with other firms.
For Hennessy Advisors, the deal represents the firm's return to the buyer's seat for the first time since 2005, when it acquired $299 million in assets from The Henlopen Fund.
The firm continued to hunt for other acquisition opportunities, but hadn't found the right fit before the Voyageur opportunity came along.
"It's not for lack of looking or trying," said Neil Hennessy
, the company's chairman, CEO and president, in an interview. "We just couldn't make the numbers work."
Hennessy Advisors will become the manager of the Tamarack Value Fund and Voyageur will serve as sub-advisor. As for the Large Cap Growth Fund, its assets will be invested in the Hennessy Large Cap Growth Fund.
Company Press Release
NOVATO, Calif., Dec. 9 /PRNewswire-FirstCall/ -- Hennessy Advisors, Inc. (OTC Bulletin Board: HNNA - News) today announced that it has signed definitive agreements with RBC's Voyageur Asset Management to purchase the assets related to the management of the Tamarack Large Cap Growth Fund and the Tamarack Value Fund. These two funds have combined assets of just under $200 million.
Upon completion of the transaction, which is subject to regulatory approvals and the approval of Tamarack Funds' shareholders and Trustees, Hennessy Advisors will become the manager of the Tamarack Value Fund and Voyageur Asset Management will act as the Fund's sub-advisor. The assets related to the Tamarack Large Cap Growth Fund will be invested in the Hennessy Large Cap Growth Fund, with Hennessy Advisors as the manager of the Fund. The transaction will be tax-free for Tamarack Fund shareholders. This transaction is expected to be completed by the end of March, 2009.
"We are very pleased to acquire these funds, and we look forward to welcoming the shareholders of the Tamarack Value Fund and Tamarack Large Cap Growth Fund into the Hennessy family. We are committed to providing strong investment management and performance, quality customer service and a high standard of business ethics to our shareholders, and we are very proud of our track record in each of these areas," said Neil Hennessy, Chairman, CEO and President of Hennessy Advisors, Inc. "We are excited to enter into a new sub-advisory partnership with Tamarack, and we believe that adding these outstanding funds to our lineup will strengthen our distribution efforts," said Kevin Rowell, President of Hennessy Funds.
About Hennessy Advisors, Inc.
Hennessy Advisors, Inc. is a publicly traded investment advisor to an entire line-up of quantitatively managed mutual funds. Hennessy Advisors, Inc. is committed to their time-tested stock selection formulas and disciplined money management approach.
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