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State Street Forms Hedge Fund Unit

State Street Global Alliance, a jointly-owned subsidiary of State Street Global Advisors and State Street Corporation, all of Boston, will develop and sell alternative investment products, including hedge funds, and has acquired hedge fund manager, RXR Group of Stamford, Conn., the company announced last week.

State Street will sell the products through a joint venture with the Dutch pension fund ABP, one of the three largest pension funds in the world, according to State Street. The new firm, called SSARIS Advisors, will be based in Stamford, Conn. and will offer a range of alternative investments, according to the company. A spokesperson for State Street Corporation declined to disclose the terms of the acquisition of RXR. SSARIS will also be used to develop new portfolio managers, according to State Street.

Mark Rosenberg, RXR's chairman and chief investment officer, James F. Tomeo, RXR's chief operating officer and senior portfolio manager and Peter A. Hinrichs, RXR's chief financial officer, will retain their jobs with SSARIS, according to the firm.

RXR had approximately $335 million in assets at the end of last year, according to State Street.