If hedge funds were a country, they would have the eighth
largest GDP on the planet. The top 100 hedge fund managers
alone control $1 trillion of hedge fund assets – a
figure that has risen 39% over the past year. And the biggest
funds are banks.
JP Morgan Asset Management – the world's largest
hedge fund manager – holds more than $33 billion in
hedge fund assets. Goldman Sachs Asset Management is a close
second. It manages $32.5 billion.
The rest of Wall Street is scrambling to catch up. In March,
Lehman Brothers bought a 20% stake in DE Shaw, the world's
fourth largest fund. Morgan Stanley forked out $600 million in
October for stakes in Lansdowne and Avenue Capital.
Imitation may well be the sincerest form of flattery, but
this ownership and operation of hedge funds is causing problems
for bankers' counsel.
With the development of hedge...