Money managers under the microscope
The challenges of volatile markets and client redemptions are finally driving the consolidation in the hedge fund sector that some commentators have been expecting.
Yesterday it was announced that hedge fund firm Cheyne Capital would buy fund of hedge funds firm Altedge Capital, a smaller boutique, and appoint Altedge CEO and CIO Chris Goekjian as partner and CIO.
The deal bears some similarities to GLG’s move in January to hire the founders of smaller hedge fund firm Pendragon Capital and move across Pendragon’s shrunken asset base.
Clients are continuing to pull out money from hedge funds, albeit at a much reduced rate in March, but the overall wave of redemptions has left many firms that have posted decent performance figures with a less viable business model.