UK hedge fund manager Man Group, the largest listed hedge funds company in the world, has said it is to acquire NJ-based hedge fund manager Pine Grove Asset Management, as part of a US push.

UK hedge fund manager Man Group, the largest listed hedge funds company in the world, has said it is to acquire NJ-based hedge fund manager Pine Grove Asset Management, as part of a US push.

Pine Grove is a US-based credit-focused fund-of-fund manager with approximately $1 billion of assets under management and will add to Man Group’s fund of hedge funds business, FRM.

The news follows the announcement in May that Man Group was in talks to potentially acquire Boston-based investment manager Numeric Holdings.

The transaction is subject to customary closing requirements and is expected to close in the third quarter of 2014. Financial terms of the transaction were not disclosed.

“FRM’s longstanding strategy has been to help investors use hedge funds to achieve their investment goals. Pine Grove has a long and accomplished track record of outperformance and is an excellent addition to the FRM business,” said Luke Ellis, president of Man Group.

After closing, Matthew Stadtmauer, currently president of Pine Grove, will become president of FRM. Tom Williams, currently Pine Grove’s chief investment officer, will continue to be responsible for all investment decisions relating to Pine Grove’s portfolios and will join FRM’s investment executive committee.

Last month, Man Group reported that funds under management crept higher to $55 billion at the end of March from $54.1 billion at the end of December, with stronger inflows pointing to a more upbeat investor mood than has existed for some time.

Man Group’s flagship AHL Diversified Program fell 2.2 per cent in the quarter, which was the main driver of the negative investment movement of $300 million in quant alternatives strategies; performance in GLG alternative strategies was flat overall with positive performance in credit strategies being offset by negative performance in equity and macro strategies.

As such a large firm in the alternative investment management sector, Man Group’s results are something of a bellwether of the state of the hedge fund industry in general; its listed status means that, unlike many hedge fund businesses, it has to disclose results relatively promptly.