Hermes BPK Partners, the UK advisory and fund of hedge funds manager, has taken over the China operations of Caliburn Capital Partners as part of its expansion plan in the Asian region.

The acquisition includes the fund of hedge fund unit of Caliburn, as well as its Singapore-based hedge fund research business. Upon completion of the deal in August, the Caliburn $100 million FoHF will be renemd to Hermes BPK Greater China Fund and become part of Hermes' range of FoHFs.

"China announced recently that it would allow and support hedge funds coming into the country and Korea. We want to be at the forefront of the developments and make sure we have the expertise and are there at the beginning," said Matteo Dante Perrucio, chief executive and founding partner of Hermes BPK Partners.

The Caliburn Greater China Fund is a good buy for Hermes as it has continued to outperform the MSCI Golden Dragon Index since its launch in April 2007. 

"The fund is not that big, it's $100 million, but the interesting aspect is that it is getting the right risk-adjusted returns," added Perrucio. 

The acquisition effectively grows Hermes' assets under management to $2.4 billion. Caliburn, also a London-based investment manager, will now focus on its single-manager hedge funds business.