Belgo-Dutch Fortis Investment Management has merged its fund of hedge funds business with Cadogan Management, an Anglo-American firm, to create a separate business with $3.7bn (€2.9bn) of assets under management.

Fortis said it will hold 70% of the new firm, which will trade as Cadogan. The merged business will have 42 staff led by chief executive Stuart Leaf, who founded Cadogan Management in 1994.