Item 1.01. Entry into a Material Definitive Agreement.

On January 28, 2008, Highbury Financial Inc. ("Highbury") entered into a Share Repurchase Agreement (the "Agreement") with Potomac Capital Management LLC, as investment manager to certain shareholders of Highbury. Pursuant to the Agreement, Highbury agreed to repurchase 300,372 common shares of Highbury (the "Shares") for an aggregate purchase price of $1,300,610.76, or $4.33 per Share. The closing of the repurchase of the Shares occurred on January 31, 2008.

Item 9.01. Financial Statements and Exhibits

Exhibits Exhibit No. Description 99.1 Share Repurchase Agreement, dated as of January 28, 2008, by and among Highbury Financial Inc. and Potomac Capital Management LLC, as Investment Manager to certain shareholders of Highbury Financial Inc.

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