US – Mellon Financial Corp. has bought hedge fund firm Evaluation Associates Capital Markets for an undisclosed sum.

Mellon said Connecticut-based EACM has 4.5 billion dollars under management and offers hedge fund-of-funds and manager-of-managers investment strategies.

“The hedge fund-of-funds business has been one of the fastest growing segments within alternatives over the last four years,” said Ronald O’Hanley, Mellon’s vice chairman and president of its institutional asset management business.

“I’m confident this addition will help us meet the increasing interest from our core client base - pension funds, endowments and other institutions - that would like to invest in the hedge fund space through a hedge fund-of-funds provider.”

Phillip Maisano and William Crerend will respectively remain chief executive and president.

“We are very excited to be joining Mellon’s institutional asset management group,” said Maisano.

EACM runs around 2.7 billion dollars in hedge fund-of-funds and 1.8 billion dollars in manager-of-managers. The deal is scheduled to close before the end of the third quarter.