Funds Hub

Money managers under the microscope

Regrets, I’ve had a few

March 19, 2009

Crosby Asset Management’s high-profile deal to buy up funds from collapsed asset manager Forsyth Partners in 2007 just looks worse and worse.

rtr226yxCrosby today said that after further demands by clients to withdraw cash it would scrap plans to merge and remarket Forsyth’s funds of hedge funds and instead shut them.

This means it will have ended up closing virtually all the funds it bought.

Crosby’s overall assets have now plummeted from $2.5 billion at the end of 2007 to just $500 million at the end of 2008, while the firm has given no indication of what that figure is now.

Crosby have been declining to speak to the press for some time but it is clear that things have got substantially worse.

Even Crosby’s own chairman described the deal today as “ill-timed”, while CEO Simon Fry said the timing was “far from ideal”.

Some firms will come through the credit crisis in good shape, having adapted their businesses and even made money. But for those who did deals at the top of the market, the repercussions can be severe, as RBS and ABN Amro have shown.

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