Lombard Odier Investment Management is to bring AlphaGen Capital's Volantis investment management team on board in a bid to expand its alternatives capability.
The eight-strong team, which manages some $1bn (£800m) in both long/short and long-only UK equity offerings, is to join Lombard Odier's existing 1798 hedge fund strategies platform.
AlphaGen is a wholly owned subsidiary of Henderson Global Investors, set up in 1999 to manage alternative and hedge fund strategies. The team originally joined Henderson as part of the Gartmore acquisition in 2011.
Lombard Odier's new hires will be based in the firm's London office and will run a niche strategy focused on UK small caps, while maintaining existing mandates.
Jean-Pascal Porcherot, head of 1798, said: "Attracting this team to Lombard Odier represents an important milestone in broadening our alternatives and uncorrelated solutions platform by establishing complementary capabilities in the UK equity long/short space."
The team will continue managing AlphaGen's long-only fund on a delegated basis.
AlphaGen chief executive Paul Graham said selling the team to Lombard Odier was in the best interest for all investors.
"Our business model is increasingly focused on more liquid and scalable strategies, we agreed with Volantis that moving to Lombard Odier IM would be in the best interest of investors."