KBC To Close Alts. Unit, Cut Back On Hedge Fund Activities

KBC, the Belgian financial services firm, is scaling back its hedge fund activities, it said yesterday.

The firm plans to discontinue some of its “hedge fund-related activities,” including closing its KBC Alternative Investment Management service. The moves are part of a larger strategic review at KBC, which is seeking to cut costs and has already imposed a hiring freeze in its home country for next year. The firm last month received a US$4.7 billion capital infusion from the Belgian government.

KBC said the hedge fund cutbacks would lead to layoffs where no suitable internal transfers are available. KBC Alternative Investment Management employs 28 people in New York, London and Hong Kong. The group focuses on relative value and market-neutral strategies.