First New York Building Hedge Fund Business(HFAlert) Proprietary-trading shop First New York is taking another stab at launching a hedge fund. The firm, whose 125 internal and external portfolio managers run a little more than $3 billion of gross assets, envisions a multi-strategy vehicle that largely would mirror its prop-trading portfolio. Since the 1980s, First New York has earned mostly double-digit returns, with low net exposure and little volatility. The New York firm plans to begin trading the FNY Total Return Fund in the second half, seeding it with $200 million of gross assets. It then would spend some time developing a track record while marketing the vehicle to outside investors.