Commerzbank Closes Fund Of Hedge Funds Unit

Feb 1 2010 | 1:58pm ET

Commerzbank has shuttered its US$1 billion fund of hedge fund business and laid off most of its staff.

The German bank had been trying to sell the unit, Commerzbank Alternative Investment Strategies, or Comas. But the firm instead abandoned the sale process, which was being run by Goldman Sachs, and had returned some 85% of its assets to investors by the end of last year, Financial News reports.

Commerzbank said it announced plans to pull the plug on Comas in July, but did not say why it decided against selling the 11-year-old unit. Comas managed US$1.5 billion in 2008, before the group was hit hard by the financial crisis. Prior to that, the unit had earned €38 million in pre-tax profits for Commerzbank over five years, although the profit had dropped from €12.5 million in 2004 to €2.4 million in 2008.

Comas has been left with a skeletal staff of operational employees to handle the winding down, which is expected to be completed in the next three months.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.