Apostle launches CastleKnight Management in Australia

Apostle Funds Management is bringing CastleKnight Management, a US$2.2 billion hedge fund manager, to Australia for the first time.

New York-based CastleKnight will help Apostle deliver wholesale and institutional strategies by investing in mispriced securities and asymmetric risk-return opportunities.

Apostle managing director Mitchell Gunman said CastleKnight applies a macro lens and rigorous bottom-up research process to identify investments driven by catalysts such as M&A, restructurings, regulatory shifts and special situations.

"This partnership continues Apostle's commitment to aligning with specialist global managers who offer alternative, institutional-grade investment strategies, enhancing its ability to deliver both performance and diversification for Australian investors," he said.

CastleKnight managing partner and chief investment officer Aaron Weitman said: "We believe this is one of the most attractive environments we've seen in over a decade. Our approach attempts to capture dislocations and capitalise on volatility whether in equity or credit."

Weitman founded CastleKnight in 2020 and before that was a senior partner at investment advisory firm Appaloosa LP.

Gunman added that CastleKnight's "dynamic, agile approach positions them to pursue outsized returns, making this strategy a compelling addition to client portfolios."

"This partnership enables our wholesale and institutional clients to access a strategy that is often difficult to find outside of major US allocators," he said.

Apostle recently added two senior executives to its investment and operations team.

Adam Camillo joined as chief operating officer while Harrison Lane was appointed investments director.