Hedge Funds

Diamond Lake struggles to get off the ground


The launch of Dow Kim’s Diamond Lake Investment Group is expected to be a bellwether for megalaunches this year. If so, it’s not sending a particularly positive signal so far. Kim, who until May 2007 oversaw the division that ended up being responsible for a large part of the $20 billion-plus writedowns by his former employer Merrill Lynch, has had to delay the start of his fund and will begin trading with less money than expected.

The former co-president of Merrill’s global markets and investment banking group lost financing from Merrill for his hedge fund last year, but he