WEST PALM BEACH, FL (HEDGECO.NET) – Two money managers at Merrill Lynch Investment Management have left the firm to begin managing their own hedge funds. This continues the trend of experiencedtraditional investment money managers� crossing over to hedge fund management. Hubert Van den Bergh and Michael Sakkas, both members of the Merrill Lynch�s UK equity team, have left.
Mark Anson of the California Public Employees Retirement System once explained this syndrome. Anson said the reason for the change is �Money. The investment management industry is in the business of gathering assets; like any other business, the industries look to increase its revenue base and its income. Hedge funds allow traditional-long only managers to collect more assets and earn higher fees. Any industry will naturally attempt to exploit those venues that offer them highest growth opportunities.�
Another Merrill manager, Steve Thompson, head of the firm�s equity specialist team, earlier left as well to join New Smith Asset Management according to the report. However, Merrill Lynch is not the only firm seeing this syndrome. Other investment banks such as Goldman Sachs and Morgan Stanley have also lost some of their experienced money managers to the hedge fund industry as well. Recently, Dinakar Singh left Goldman Sachs to start his own hedge fund as well and Stephen Galbraith a well-respected Morgan Stanley strategist, based in New York joined Maverick Capital Management LLC.
Hedge funds continue to appeal to many traditional market investors, as well as institutional investors, as the equity markets continue with its lack luster performance. It is unclear when such trend may end, but hedge fund market analysts think there are too many hedge funds in the market now chasing diminishing opportunities. This scenario will naturally limit the number of new hedge funds hitting the market.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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