Pair Of Purchases Renew Hedge Fund Shopping Spree

Mar 14 2007 | 11:18am ET

After a February lull, Wall Street is back in the market for alternative investment managers with a pair of transactions this week.

Yesterday, Lehman Brothers bought a slice of its fifth hedge fund firm, agreeing to pay an undisclosed amount for a 20% stake in New York-based D.E. Shaw & Co., the fourth-largest hedge fund manager in the U.S. with some $29 billion in assets under management.

The deal is Lehman’s second this year for a hedge fund manager: In January, it took a 20% stake in London-based Spinnaker Capital Group.

Earlier this week, Morgan Stanley, which went on a hedge-fund shopping spree last year, buying all or part of five hedge fund managers, added to its stable, taking a minority stake in startup Asian special situations shop Abax Global Capital. The Hong Kong-based fund, which is expected to be the largest-ever independent Asian hedge fund launch with over $1 billion, was founded by Citadel Investment Group veterans Chris Hsu and Frank Qian, along with Donald Yang, the former head of Hong Kong and Greater China debt capital markets at Merill Lynch.

Morgan Stanley did not disclose either the size of its stake or how much it was paying for it. The new hedge fund will focus on private- and public-sector issuers in mainland China, Hong Kong and Taiwan.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

The Cult of Loss Aversion: A Call to Rethink Risk in Global Macro Investing

Sep 4 2014 | 5:45am ET

In the wake of a traumatic loss, whether it is financial or personal, it is just...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

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.