Fund launches & closures

Coast Asset Management to sell remaining FoHF business

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Coast Asset Management, which is based in Santa Monica, is quitting the fund of hedge fund business to focus the firm’s efforts on its fixed-income arbitrage investment strategy at a time where only serious fund of hedge fund players will survive as investors try to cut back on fees.

Prior to the financial crisis, the firm had as much as $3.8 billion in its fund of hedge fund business, dropping out of the InvestHedge Billion Dollar Club in 2009.

A number of blue-chip US-based hedge funds are struggling to raise assets for their ancillary non-core third-party fund of