Old Mutual Buys into Copper Rock

Old Mutual Asset Management has acquired a majority interest in Copper Rock Capital Partners, a small-cap growth shop comprised of veterans of other Boston-based mutual fund companies, the Boston Globe reports.

Copper Rock was formed in February by Tucker Walsh, CEO, and four other principals. All were alums of State Street Research and Management Co. before MetLife completed the sale of that unit to BlackRock. The company's president is Michael Malouf, who had been part of Neuberger Berman's three-man Boston office until it was closed in December of 2002.

The "strategic alliance" with Copper Rock, as Old Mutual stated in its annual report, "is designed to supplement our capability in [the small cap growth] product area" and is part of the company's shuffling of investment management, following troubles with recently-renamed Pilgrim Baxter & Associates.

Old Mutual also reported that it has discontinued operations of Sirach Capital Management, a growth equity manager that "suffered steep asset declines" following the collapse of the market in 2000. The manager had $1.6 billion under management at the beginning of 2004 and Old Mutual opted to return the money to clients, resulting in $14 million in losses.