Reuters UK- Recent volatility and slumping returns in the hedge fund industry have not dampened the appetite for new funds founded by former investment bankers from firms such as JPMorgan Chase to Merrill Lynch & Co.
The new funds are evidence that investors continue to flock to the fast-growing, $1.8 trillion hedge fund industry, which promises investment returns in up markets or down, but does not always deliver. Hedge funds in aggregate lost 1.3 percent in August, according to Hedge Fund Research, an industry tracker.
Among the highest profile is Robson Ventures LLC, a firm founded by Phil Duff, the former Morgan Stanley senior executive who co-founded multi-strategy hedge fund group FrontPoint Partners but left after his alma mater bought the firm late last year.
Robson is set to unveil a hedge fund and private equity strategy in October with “substantially more” than $300 million to finance acquisitions, fund company growth and make other investments, according to sources. Robson describes itself as “the next generation investment management company.”
Duff declined to comment.
And slated for a launch early next week is Pent Water Capital, a Chicago-based multi-strategy hedge fund that is expected to lure around $1 billion in investments, sources said.
