Former Kapstream Capital portfolio manager Mark Mitchell has launched a new absolute return fixed income boutique with the founders of Perennial.
New boutique Daintree Capital is a five-person specialist absolute return funds management boutique with a focus on protection against downside risk.
Daintree Capital will be led by former Kapstream Capital head of credit Mark Mitchell and former Aberdeen senior investment management Justin Tyler.
The new business will also receive back office and marketing support from the two founders of Perennial: Anthony Patterson and John Murray.
Mr Patterson said investor demand for total-return fixed interest funds is likely to continue in the current low interest rate environment.
"We will be delivering income products that will reliably deliver superior returns than those available through many traditional banking products," Mr Patterson said.
"Perennial will be running the back-office and distribution functions of Daintree, allowing it to stay wholly focused on gaining the best risk adjusted returns for investors.
"We look forward to supporting Mark, Justin and the Daintree Capital team in building their business and running a successful portfolio for our investors. They are successful credit and income specialists and we believe they have a very bright future."
Mr Mitchell said Daintree's investment philosophy will be based upon a "robust credit culture" and a "pragmatic" investment process.
"At the heart of our investment process is a strong risk management framework. We believe that this approach ensures a consistency of performance over time and strong risk-adjusted returns," Mr Mitchell said.
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