Wells Fargo Seeks Fund Of Hedge Funds

Nov 5 2012 | 2:12pm ET

Add Wells Fargo to the list of firms eyeing a foothold in the fund of hedge funds space.

The bank's asset management arm is in the market for a fund of funds firm with between $5 billion and $12 billion in assets under management, its CEO said. It joins Principal Global Investors in seeking out a fund of funds, and hopes to follow in the footsteps of Kohlberg Kravis Roberts and Franklin Templeton Advisors, which recently acquired Prisma Capital Partners and K2 Advisors, respectively.

"We are keen to provide advice on alternatives allocations," Wells Fargo Asset Management CEO Mike Niedermeyer told Financial News. "It is the thing our clients request most often."

Niedermeyer added that WFAM preferred a fund of funds to buying or starting a hedge fund of its own, favoring access to skilled hedge fund selection and allocation to direct management.

And while funds of funds' share of the hedge fund market continues to drop, Niedermeyer seems well aware that the industry's model will have to change. The WFAM CEO says he expects fees to drop across funds of funds, including whichever firm Wells Fargo is able to buy.

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…