Jupiter's chief executive Maarten Slendebroek said he "wouldn’t hesitate" to buy a smaller rival as he hunts for diversification.
Mr Slendebroek said he wanted his firm to become more diversified as, historically, the business has relied on equity funds.
In its half year update to the end of June Jupiter reported net outflows of £2.3bn for the year.
Mr Slendebroek said this was the result of both of investor nervousness about the impact on bond markets of US interest rates rising, and the position the bond fund managers have taken in the market, which is a view predicated on interest rates not rising quite as quickly as the market currently expects.
He said there was much discussion about the pressure on active fund management fees and said he expects active fees to drop for all firms in the coming years by about one basis point annually.
He said: "The market for proper active management is growing, and the market for passive is growing, the part of the market in between those two is what is not growing.
"But that is not a part of the market we are in. We are genuinely active and high conviction, the part of the market that is growing. There is a lot of focus on quarter to quarter numbers by the media, but we are focused on the long-term."
Mr Slendebroek said the size of his firm, being bigger than a boutique but smaller than the largest firms, had its advantages.
He said dealing with regulations such as Mifid was easier for a firm of his size than for a larger firm.
That is a view David Barron, chief executive of Miton Group, has previously articulated. He said the "simplicity" of a smaller firm makes the regulatory challenges less of a burden.
Mr Slendebroek said while he is interested in small acquisitions, he would also be interested in hiring the right people.
"And we have found that it is often easier to hire the right people than to buy a firm," he added.
Jupiter recently hired Taleb Sheikh from JP Morgan to fill the role of head of multi-asset strategy, and a fund managed by Mr Sheikh will soon come to market.
Mr Slendebroek said another phase of Jupiter’s growth will come from international expansion, as the company has recently hired people to grow the sales of the company’s products in Holland and the Middle East, among other locations.
Darius McDermott, managing director at Chelsea Financial Services, said Mr Sheikh had a lot of "credibility" as a multi-asset investor.
david.thorpe@ft.com
