British hedge fund Man Group has stepped up its assault on the US market by agreeing to buy Pine Grove Asset Management for an undisclosed amount.
Pine Grove has about $1 billion (£595 million) under management and a broad base of institutional clients in the US as well as high net worth individuals.
The deal comes just weeks after Man admitted it was in separate talks to buy another US fund, Boston-based Numeric Holdings.
Luke Ellis, president of Man, said Pine Grove will be folded into its fund of hedge funds business, FRM. He added: “Pine Grove has a long and accomplished track record of outperformance and is an excellent addition to FRM.”
Man shares edged 0.5p higher today to 102.8p, having risen by 11% over the past year under the stewardship of chief executive Manny Roman, who took over from Peter Clarke last year.
Roman joined the group in 2010 when Man bought GLG, the hedge fund he co-founded, for $1.6 billion.
Many in the City believe Man paid too high a price for the GLG deal, although in recent months it has managed to stem the tide of investors pulling money from its funds by cutting costs and diversifying its business.