High conviction manager Hyperion Asset Management (Hyperion) yesterday launched a large cap growth fund aimed at Australia's institutional market.
The fund will invest in 15 to 25 large cap Australian stocks taken from the S&P/ASX 300 index and will be capped at $2.5 billon.
The firm said it had launched the fund in response to demand from institutional investors to consolidate the amount of separate fund managers they invest in.
"When speaking with institutional investors we identified that many of them were looking to consolidate the number of fund managers they mandated . . . a smaller number of managers using a high conviction approach arguably improves the funds' ability to outperform its benchmark," Hyperion's institutional business director Tim Samway said.
According to Hyperion, many institutional investors are paying active management fees for portfolios that effectively track the index.
Hyperion has been running its large cap fund internally for the last four years, over which time it has returned 5 per cent above the benchmark S&P/ASX 300 Accumulation Index.
Hyperion is 50 per cent owned by funds incubator Pinnacle Investment Management, with the remaining 50 per cent owned by staff.
