OppenheimerFunds is beefing up its hedge fund capabilities through the pickup of Tremont Advisors (Nasdaq: TMAV), a Rye, New York based hedge fund manager. The 76 employee firm was founded in 1984 by Sandra Manzke as one of the first woman owned hedge fund managers.

Bermuda-based Mutual Risk Management (NYSE: MM) is selling its 20 percent minority stake in Tremont to OppenheimerFunds as a part of the deal.

The price tag on the deal, which is subject to adjustment, was $19 per share. At that price the firm is valued at $140 million. The publicly-traded stock closed yesterday at $19.75. The transaction is expected to be closed in the fourth quarter. Tremont will remain an independent, wholly-owned subsidiary of Oppenheimer Acquisition Corp upon completion of the deal.

Co-CEO's Manzke and Robert Schulman will continue to head the firm. Tremont is also an investor in Hedgeworld.com, a Web site providing news and information to the hedge fund community.

Manzke explained that OppenheimerFunds brings distribution and product strengths to the table and are likely create a turning point in the growth of Tremont's business. For OppenheimerFunds the deal brings a strong manager of alternative assets into the family.

"There is growing interest among high net worth investors and institutions alike in hedge funds and other alternative investment products that seek to provide positive returns regardless of the direction of the stock market," said John V. Murphy, chairman and chief executive officer of OppenheimerFunds. "This transaction brings together a recognized leader in alternative investment management with one of the nation's premier managers and distributors of investment products. The synergies are considerable."

Murphy replaced Bridgette Macaskill in the top spot at OppenheimerFunds a little more than a week ago. OppenheimerFunds Acquisition is a unit of insurer MassMutual.

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