FRM Capital Advisors and Sensato Capital Management have formed a strategic relationship which involves FCA investing up to $50 million with Sensato.

Sensato was founded in May 2009 by the former co-heads of active equity strategies at Barclays Global Investors, Ernest Chow, PhD, CFA and Jonathan Howe, PhD. Together they led and managed BGI’s Asia active equity strategies, at the peak overseeing over $30 billion in client assets.

Sensato builds on the pair’s experience at BGI, adopting a fundamental, quantitative approach to investing in Asia Pacific equity markets. FCA’s investment will provide Sensato with additional investment capital and the resources to further build out its 21st century investment platform.

Patric de Gentile-Williams, COO of FCA, stated: “Ernie and Jonathan’s impressive performance at BGI and experience building and managing a strong team are a testament to their calibre and talent. We feel their strategy is well suited for investors looking for returns from Asian markets through a rigorous, relative value approach designed to extract alpha from markets. They have already built an impressive team and research & systems infrastructure and we look forward to supporting their development going forward.”

Ernest Chow, Partner and Co-Founder of Sensato Capital stated: “We expect institutional investors to continue to increase their exposure to Asian markets. We believe that our flexible long-short approach can offer these investors a valuable source of alpha and having a significant investment from a highly regarded company such as FCA will help us attract interest from other investors and further develop our business.”

Jonathan Howe, Partner and Co-Founder of Sensato Capital stated: “We appreciate the sophistication of the FCA team and its rigor in evaluating Sensato Capital. They have a deep understanding of our distinctive capabilities. We look forward to a fruitful partnership.”