Reserve Funds purchased three stock mutual funds from two First Republic Bank subsidiaries, Trainer, Wortham & Co. and Froley, Revy, Reuters reports. Reserve, best known for creating the first money market mutual fund, plans to acquire additional stock funds, the company said. The firms did not reveal terms of the acquisition.
Reserve President Bruce Bent said the firm decided to make the acquisition which will add a mere $72 million to the firms $30 billion in assets under management since a number of small funds have recently folded. "We see ourselves as saving good products and good managers who might be killed off in the current environment," Bent said. In fact, in anticipation of additional acquisitions, Reserve has hired a number of attorneys.