The Pittsburgh investment manager Federated Investors Inc. has a deal to acquire two funds from David W. Tice & Associates LLC.

Federated agreed to buy the $1.2 billion-asset Prudent Bear Fund and the $507 million-asset Prudent Global Income Fund for a $43 million initial payment and contingent payments of up to $99.5 million over the next four years.

The Prudent Bear Fund, launched in 1995, targets positive capital appreciation through a combination of short sales of equity securities, short sales and puts of equity market indexes, and long positions in stocks of precious metals companies, overlaid with a risk control process to limit losses in bull markets.

The Prudent Global Income Fund seeks current income and capital appreciation. It is designed to help investors benefit from a weakening U.S. dollar and increasing gold prices. It invests largely in short-term government-issued foreign fixed-income securities and gold mining equity securities.

Federated would rebrand the funds as the Federated Prudent Bear Fund and the Federated Prudent Global Income Fund.

Doug Noland would join Federated as a senior vice president and senior portfolio manager for both funds and will continue to oversee day-to-day management of each portfolio.

David W. Tice, who founded the funds, would join Federated as a chief portfolio strategist.

Federated, which announced the deal Tuesday, had $338.5 billion of assets under management as of March 31. It manages 147 mutual funds and a variety of separately managed accounts.

The deal is expected to close next quarter.

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