Arrowpoint and Meridian Funds a Good Fit

Posted: 10.14.2013

"Aster Investment Management and Arrowpoint Partners were two firms on different trajectories.

Heading into 2013, AIM, based outside San Francisco, was still reeling from the sudden death a year earlier of its president, Rick Aster, who was synonymous with the firm he founded in 1977 and the Meridian Funds that AIM had managed since their respective inceptions. Almost $900 million had exited the funds’ coffers since Aster’s passing, and Meridian’s trustees were searching for an outside investor who could help the firm and the funds survive. “It was clear we were missing Rick’s hand” on Meridian Growth MERDX, says Jim Glavin, a board member.

Meanwhile, Arrowpoint, located more than 1,300 miles to the east in Denver, was enjoying a comfortable existence as an up-and-coming money-management firm. Arrowpoint was stocked with blue-chip talent who had left Janus, including co-founder David Corkins, who had skillfully managed $20 billion in accounts and at funds such as Janus Mercury (now Janus Research JRAAX) and Janus Growth & Income JDNAX. Since opening its doors in 2007, the firm’s assets had grown to $2 billion as it posted solid performance in its clients’ accounts during the 2008 downturn."