London-listed Majedie Investments is setting up a subsidiary, Javelin Capital, to manage its assets under a new investment management agreement.

Javelin’s senior management, all Majedie staff, will include Gerry Aherne as chief executive, Victor Pina as chief investment officer, Dr Steven Asprey as portfolio manager and Nick Rundle, who is currently investment director. The new entity will be governed by a management board which consists of both Majedie directors and Javelin partners.

Majedie is seeking to increase both the size and quality of its earnings, and gain geographical and investment diversification. Javelin will be an alternative equity boutique offering both long-short and long-only investment approaches in both global and UK equities. The aim is to develop a specialist fund management group that will deliver superior investment returns and offer high-quality, multi-strategy equity products to professional investors.

Majedie is putting £4.5 million (about $7 million) into Javelin to finance the start-up and projected costs for the first three years and to provide regulatory capital. The business plan for Javelin envisages that this capital will be substantially repaid within the three years. Majedie will hold an initial 70 per cent stake in Javelin with the rest held by partners and staff.

Majedie has gross assets of approximately £148 million.