State Street Global Advisors is selling its majority stake in a Wilton, Conn., hedge fund group back to the executives who manage it.
State Street Global and the hedge fund group, SSARIS Advisors , “have decided to end their relationship,” according to a statement by a spokeswoman for State Street Global’s parent, State Street Corp. in Boston.
“This decision reflects a mutual agreement that operating independently is the best course of action for both organizations and their clients,’’ said Alicia Curran. Terms of the deal were not disclosed.
State Street invested in SSARIS in 2001 and held a 60 percent stake.
The hedge fund group has been in business since 1983, according to its website, and runs a number of different absolute-return strategies, as well as funds-of-funds. It has $1.4 billion in assets according to its latest filing with regulators, and consults on another $750 million.
State Street is a custodian and record keeper for hedge funds, as part of its large business of servicing investment firms. The vast majority of its $2.4 trillion investment management business is in passive index funds. SSARIS was part of $124 billion in alternative investments. State Street Global plans to take over SSARIS’s co-management of two State Street Global-branded hedge fund strategies.