Funds Hub

Money managers under the microscope

Bringing it all back home

January 30, 2009

Two of the world’s biggest fund managers have decided that it may just not be worth their while being associated with running external fund of hedge fund businesses.

rtxa3wsHot on the heels of news that Barclays Global Investors is considering moving its first and only fund of hedge funds to its wealth management business comes news that State Street Global Advisors quietly wound down its own hedge fund unit State Street Capital Management at the end of 2007, which ran some $3 billion in assets.

SSgA global CIO Richard Lacaille told us this week that the fund manager had closed all the strategies in the business and is no longer using external managers.

Lacaille had taken over the running of the unit after the defection of State Street’s hedge fund chief Chris Woods to Man Group.

And in a sign of the times, SSgA now does not even want to be known to be running hedge fund strategies — which Lacaille says is a “pejorative term in some quarters”.

The fund manager will continue to run “absolute return strategies” internally — through what Lacaille mysteriously calls its “mothership initiative”.

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