The BNY Mellon hedge fund EACM Advisors will be shut down. The Connecticut-based multi-manager and fund of hedge funds has seen a lack of investor demand.

The unit will now cease to operate as a standalone business, with its long-only strategies worth $1.8bn to be managed within BNY Mellon Investment Management.

The business also comprises hedge funds strategies worth $2.1bn, which will not accept new investors and return existing capital to investors.

BNY Mellon Investment Management CEO of US asset management and EACM board member Des Mac Intyre said: “Despite EACM’s long track record, the overall demand for fund of hedge funds strategies has diminished. Following a market evaluation, we no longer see the fund of hedge funds category as a standalone offer within our U.S. asset management portfolio given the integrated capabilities we already have elsewhere within the business.

“Retaining EACM’s institutional quality manager selection and asset allocation expertise in long-only strategies will complement the existing specialist solutions provided from our other investment managers.”

As part of the move, BNY will also liquidate its Dreyfus Select Managers Long/Short mutual fund, which has EACM as the portfolio allocation manager. The vehicle is expected to be liquidated on or about 30 November 2018.

Intyre will now become EACM board chairman as the business is wound down, while BNY Mellon Asset Management North America managing director Michael Germano will manage the wind down process.