Hedge Funds

Desperate funds warm to managed accounts.


So desperate are fund managers for financing these days that many of them have begun to do something they previously found unthinkable - cater to investors' demands for individually managed accounts. As a result, a handful of fund-of-funds firms have begun marketing funds of managed accounts.

"We're moving toward an era where funds of funds are setting up funds for investors that are in ten different managers purely through managed accounts," says a fund manager for a New York macro fund. "This is all a consequence of what happened last year, and I think it will be the biggest