It was inevitable and now it is official: the big investment
banks led by CSFB, UBS and Merrill Lynch are getting back into
the game of raising money for hedge funds, and about time too.
The banks sell everything from private equity to internet or
mining stocks; yet, until now, they have been frightened to
sell the best performing asset class in the world.
Obviously, we know why. The job of raising money for hedge
funds became a dangerous business following the demise of
Long-Term Capital Management, which left Merrill Lynch, which
had raised so much money for John Meriwether and his gang,
wishing they had never heard of him, let alone put so many of
their clients into his fund.
Now, Merrill is coming back into the business just behind
UBS and CSFB, which are already out there telling people about
their ability to reach a different class of...