Money managers under the microscope
New Star a timely boost for Henderson
Henderson’s purchase of struggling New Star looks a good way of quickly beefing up its falling hedge fund assets — at a time when the industry is seeing investors pull out their cash left, right and centre.
Henderson saw 400 million pounds in hedge fund outflows in the second half of 2008 — 100 million pounds in Q3 and 300 million pounds in Q4 — helping push assets down to 800 million pounds at the year-end.
However, the New Star deal conveniently adds around 300 million pounds of this higher-margin business — an area Henderson is keen to grow.
The deal also allows it to take on some additional fund management talent and while Henderson plans to cut headcount at New Star, it is eyeing up the key people it wants to retain.
New Star’s fund performance has been much-criticised of late, but the fact remains that it employs top hedge fund talent such as Richard Pease and Guy de Blonay who are likely to be a big asset to any employer.