A Copia Investment Partners boutique won a $27 million micro-cap investment mandate.
OC Funds Management, founded in 2000 by head of investments Robert Frost, will manage a micro-cap portfolio for Contango MicroCap.
Contango said OCFM was selected after an "extensive process involving an independent consultant who conducted a detailed review of micro-cap managers, their investment process and the quality of their investment team."
OCFM is Contango's second investment manager; the first is Contango Asset Management, which spun off into a separate business in June last year.
The new owner of Contango Asset Management (CAM) is CAM SPV, an entity created by members of the funds management business's investment team, including CAM chief investment officer George Boubouras. CAM SPV purchased the business for $13 million.
At the time, Contango MicroCap chair Mark Kerr explained: "[Contango] acquired 100% of CAM in November 2013 to reduce fees and improve corporate governance. That has been achieved and the CAM investment has proven to be a successful one."
"Following a review of the investment, the company came to the view that the key management team ideally should have direct equity participation in the business. Contango believes that CAM is now well-positioned to grow both its product offerings and highly customised services," Kerr said.