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

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…