Bloomberg – Like plenty of financial players, hedge funds are taking a beating.

Many once-high-flying managers have been swamped by losses. Others have abandoned the business after discovering it wasn’t such an easy path to riches. Even some of the biggest firms — Citadel Investment Group LLC, D.E. Shaw Group and Tudor Investment Corp., among others — have had to block investors from withdrawing money.

This is great news for, well, hedge funds and their investors.

The retrenchment might force hedge funds, lightly regulated investment pools, to rediscover what they once were — small, guerrilla investors focused on returns, not artery-clogging management fees.

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Tags: citadel-investment-group, citadel-investment-group-llc, e-shaw, easy path, great news, guerrilla, investment pools, investors, losses, management fees, money, retrenchment, shaw group, tudor investment

Times Online – RAB Capital has agreed to sell Northwest, its loss-making Asia-focused investment business, back to its founding principals for only £1 million in the latest sign of retrenchment by the AIM-listed London hedge fund manager.

RAB, which originally paid more than £20 million for the business, said today that it would sell Northwest’s three funds to George Philips and David Rogers, who set up the business in 1998.

Mr Philips and Mr Rogers will take assets of about $300 million and a team of about 12 people with them. Northwest generated pre-tax profits of about £9 million in 2007 but is expected to be loss-making for last year.

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Tags: 1-million, aim, asia, assets, david rogers, george philips, hedge-fund-manager, investment business, london, mr rogers, principals, retrenchment, tax profits