Bigger may be better as smaller hedge funds give up
Monday, July 7, 2008 : PermalinkReuters UK- Bigger may really be better for hedge funds at a time the $2 trillion (1 trillion pound) industry’s smaller players face tough choices of either merging or being forced out of business.
In the first six months of 2008, more than a dozen smaller funds have already agreed to let larger players own a piece of them, and investors and managers expect that pace to quicken.
Man Group, the world’s largest publicly traded hedge fund group, has taken stakes in Ore Hill Capital and Nephila Capital, while Goldman Sachs’ Petershill unit has taken stakes in Capula Management, Claren Road Asset Management and Trafalgar Asset Managers.
