By Simon Jessop
LONDON (Reuters) - UK hedge fund manager Man Group (L:EMG) confirmed on Thursday it was in talks to buy U.S. asset manager Numeric Holdings as it looks to further diversify its quantitative fund offering.
A deal for the Boston-based firm, part-owned by private equity group TA Associates and up for sale since early 2013, would broaden a quant fund stable that is currently focussed around its flagship AHL computer-driven funds.
It would also boost its presence in the United States, the biggest hedge fund market in the world, as well as its foothold in the institutional market, dealing with clients such as pension funds, which are driving growth in the broader industry.
Man, which manages more than $55 billion in assets, has restructured extensively after being hit by poor performance and heavy outflows of client funds during the financial crisis, after which it bought fund of fund and advisory group FRM and alternative asset manager GLG.
In a statement on Thursday, Man said discussions with Numeric, founded in 1989, with 74 employees and which manages more than $13.9 billion in assets, were ongoing and may or may not lead to a transaction.
Shares in Man were down 0.1 percent at 0715 GMT, broadly in line with the FTSE mid-cap index .
(Reporting by Simon Jessop; editing by Huw Jones)