Launches & Closures Hedge Funds

Basswood to launch financials fund


The firm is predicting a new wave of financial services consolidation.

Basswood Capital Management, a $380 million long/short equity shop in New York, is returning to financial services investing after redeeming outside investor capital in a similar fund in 2006. The firm expects to roll out the Basswood Financial Fund on April 1 with $25 million.

The fund will invest in a range of financial services companies, such as banks and asset management firms. Basswood expects that smaller financial institutions will continue to consolidate the way that larger firms combined over the past two decades.

Identical twins Matthew and Bennett Lindenbaum founded Basswood in 1994 and launched Basswood Financial