WSJ – London Diversified Management LLP, a hedge-fund firm that managed $5 billion at the beginning of 2008, shrunk to just $300 million over two years, after the performance of its flagship fund tumbled and investors pulled out money.
The financial crisis wiped hundreds of billions of dollars from the hedge-fund industry, and smaller hedge-fund firms in particular have struggled to recover. Assets managed by London Diversified Management , founded by former J.P. Morgan Chase traders David Gorton and Rob Standing in 2002, had risen to $500 million as of April after tumbling to $300 million at the end of 2009, according to a person close to the company. The firm had managed $5 billion at the start of 2008.
