Hedge Funds

Mellon buys currency specialist Pareto

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In a bid to become one of the world's largest players in currency overlay products, Pittsburgh-based Mellon Institutional Asset Management recently penned an agreement that would up its minority stake in U.K.-based Pareto Partners to full ownership.

Mellon already has a 30% stake in Pareto, a 13-year-old shop that oversees roughly $40 billion in assets. As part of the deal, Mellon will be acquiring the remaining 70% ownership stake from Pareto principals and XL Capital Ltd. The acquisition will give Mellon's institutional asset group full ownership of Pareto's $35 billion currency business and its fixed-income portfolio business valued at