An East Coast mutual fund shop just bought a Midwestern hedge fund shop.

Jerry Szilagyi, CEO of Catalyst Funds [profile], confirms that his Huntington, New York-based shop is buying Chicago-based Auctos Capital Management. Catalyst was slated to convert Auctos' flagship hedge fund into a new mutual fund, the Catalyst/Auctos Managed Futures Multi-Strategy Fund, on July 31.

Auctos president Kevin Jamali and four other Auctos employees will join Catalyst and stay in Chicago. Catalyst will take over Auctos' SMA business, though that business will keep the Auctos name.

"In adding Auctos' products to Catalyst's portfolio, we are expanding our investment management and research capabilities," Szilagyi states. "This strategy is another example of our 'intelligent alternative' investment approach."

Earlier this year, Szilagyi told MFWire that he would "continue to look to new products, particularly on the liquid alternatives side." 

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