Assets at Cazenove Capital Management rose by 27% last year, aided by large inflows to its Absolute UK Dynamic fund in September.
Cazenove Capital Management ran £13.9bn at the end of last year, compared to £10.9bn at the end of 2008.
Its acquisition of wealth manager Thornhill Holdings, announced last month and completed this month, will add £650m of private and charity assets to the group's total, it says in its asset update released this morning.
Robin Minter-Kemp, managing director of Cazenove Capital Investment Funds, says the launch of the Absolute UK Dynamic fund, under Neil Pegrum and Paul Marriage, bolstered assets, taking in £123m in less than two weeks.
Minter-Kemp says: "Our absolute return approach is in line with what investors and advisers are seeking in the current markets".
Cazenove Capital chief executive Andrew Ross says assets in investment funds grew by almost 50% in 2009.
When the assets at Thornhill are included - bringing the total group assets to £14.5bn - about £2.8bn of the money in Cazenove investment funds is long-only and £1.3bn in long/short portfolios.
Cazenove's £9.6bn of wealth management assets are tilted towards private clients (£6.7bn), followed by charities (£2.6bn) and institutions (£300m).
