UBS this week announced the creation of a new hedge fund division that will offer the firm's proprietary trading strategies to outside investors for the first time.
The new unit, Dillon Read Capital Management, will be headed by John Costas, who formerly ran the firm's investment bank. Costas will in turn report to John Fraser, head of investment management.
The move clearly underscores the fact that UBS, which has in recent years been aggressively building up its prime brokerage effort, is eager to expand its business in the fee-rich hedge fund market.
Replacing Costas as he moves over to the