Hedge Funds Performance

Search for scale to drive mergers, Jefferies reports


With hedge funds reeling from declining assets and likely to face increased costs related to regulation and compliance, they will look to merge with each other to achieve greater economies of scale, according to a report on merger and acquisition activity released this week by Jefferies Putnam Lovell.

The report, entitled "Are We There Yet?! M&A and Capital Markets Activity in Global Fund Management," notes that "even as the models of hedge funds and funds of hedge funds are being re-examined, alternative management remains high on the list of strategic priorities among asset managers. Intra-sector mergers or acquisitions