Bigger may be better as smaller hedge funds give up

Discussion in 'Wall St. News' started by archon, Jul 8, 2008.

  1. archon

    archon

    http://in.reuters.com/article/governmentFilingsNews/idINN0325515320080707


    Bigger may be better as smaller hedge funds give up
    Tue Jul 8, 2008 2:27am IST

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    By Svea Herbst-Bayliss

    BOSTON, July 7 (Reuters) - Bigger may really be better for hedge funds at a time the $2 trillion industry's smaller players face tough choices of either merging or being forced out of business.

    In the first six months of 2008, more than a dozen smaller funds have already agreed to let larger players own a piece of them, and investors and managers expect that pace to quicken.

    Man Group (EMG.L: Quote, Profile, Research), the world's largest publicly traded hedge fund group, has taken stakes in Ore Hill Capital and Nephila Capital, while Goldman Sachs' (GS.N: Quote, Profile, Research) Petershill unit has taken stakes in Capula Management, Claren Road Asset Management and Trafalgar Asset Managers.

    rest of article here:
    http://in.reuters.com/article/governmentFilingsNews/idINN0325515320080707
     
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  3. The industry is experiencing some consolidation. It should be expected. No big deal.