Reuters- More merger and acquisition activity among fund firms is likely as the industry faces up to a tough 2008, said Mark McCombe, head of HSBC’s asset management arm, which is to rebrand next month.

McCombe, chief executive of what will be known as HSBC Global Asset Management and include the firm’s hedge fund, quantitative, liquidity and multi-manager arms, said the funds industry had had a tough time over the past year and faced further difficulties this year.

"You had this almost perfect storm situation, where liquidity dried up, dislocation, added to which you then built in volatility … I think you can say this year will be a difficult year for all asset managers and for differing reasons," he said in a recent interview.

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