Capital Management L.P., a global equity investment management firm.

XL stated that it had acquired a passive minority stake in Highfields for an undisclosed price.

Highfields and affiliates currently manage three hedge funds with aggregate capital under management of about $1.7 billion. Boston-based Highfields was established in 1998 by Jonathon Jacobson and Richard Grubman.

"XL Capital will focus on developing potential synergies between its insurance, reinsurance and financial products lines of busienss and the investment management expertise of Highfields,'' XL president and chief executive officer Brian O'Hara stated.