Boutique fund manager Cannae Capital Partners will stop seeking new business and the majority of Cannae's investment team is joining Investors Mutual (IML).
 
Cannae managing director Hugh Giddy has been appointed as senior portfolio manager and head of research at IML, and he will be joined there by analysts Daniel Mueller, Daniel Moore and Michael O'Neill.

Cannae and IML are both owned by boutique incubator Treasury Group.

"The Cannae business will take on a sub-advisory role in the exclusive management of funds for IML and institutional clients," Treasury Group managing director Mark Burgess said.

"To reflect this exclusive commercial arrangement, the Cannae business will alter its name to be more closely aligned with IML (the new name will be announced shortly) and will no longer seek business under the Cannae brand," he said.

Giddy will take responsibility for the management and oversight of the research process and team management. IML founder and investment director Anton Tagliaferro will continue to be lead portfolio manager for IML's funds.

Cannae's former investment team members and Tagliaferro will together hold 60 per cent in the former Cannae business and Treasury Group 40 per cent.

The transaction should not be seen as a merger of the two companies, Tagliaferro said.

"It's not a merger per se. It's Hugh and three of his investment team joining IML," Tagliaferro said.

"Hugh was keen for a new challenge, so hence the announcement today," he said.

During the global financial crisis, Cannae saw its funds under management almost halve.

At June 2009, the company had just $43 million in funds under management, compared to $81 million a year earlier.