The new head of Dalton Investmenst's new London business is looking to add large European institutions to the firm's client roster, as it joins a select band of US hedge funds to chance their arm in the region.

Craig Mercer, formerly head of emerging markets equity research at investment consultant Towers Watson, joined Dalton Investments two months ago to run the firm's embryonic London operation. Prior to his role at Towers Watson, he worked as an analyst specialising in Japanese and Asian funds for Stamford Associates.