The Switzerland-listed asset manager said the move fits within its strategy of organic growth alongside targeted acquisitions and team lift-outs.

Zurich-headquartered GAM has agreed to acquire Taube Hodson Stonex (THS), a UK-based equity investment firm, for an undisclosed sum.

On completion of the acquisition, expected during the third quarter, the THS investment management business will transfer to GAM. The investment team, led by the four principals Cato Stonex, Mark Evans, Robert Smithson and Ali Miremadi, will move to the GAM offices in London and its strategies will come under the GAM brand.

THS manages around £1.78 billion of assets ($2.6 billion) as at 31 March 2016. The firm, which is a high conviction, long-only manager, has been the sub-advisor to one of GAM's global equity strategies, launched in 1983.

“The THS team is a great strategic and cultural fit for GAM and we are delighted that they have chosen to join us. We have a multi-decade relationship with the founders and this acquisition is consistent with the growth agenda we set out in 2015, which includes targeting opportunities that substantially deepen our global equity capabilities,” said GAM's group chief executive, Alexander Friedman.

As of the end of March, GAM, which operates from 11 countries, managed SFr114.7 billion ($119.8 billion) of client assets. This was down by 4 per cent from the end of last year.