Problems At Mutual Funds.

Adding to the mutual fund industries worries is the increasing arrival of hedge fund managers to their long only turf...

Profit-starved hedge fund managers, best known as masters of the financial universe, are turning to an unlikely place for their next windfall: the unglamorous world of long-only asset management. Amid volatile markets, constraints on the capacity of their main trading strategies and an ever more conservative investor base, some of the industry’s biggest names are focusing on raising money for pared-back versions of their main portfolios, eschewing leverage and short selling in pursuit of assets and stability. Hedge fund managers see big opportunities in bringing their skills – and the higher fees they charge – to an increasingly passive long-only investment world. “There is a trend now to grow [long-only funds run by hedge funds] quite aggressively, the main attractions are that you diversify your fee base and expand your investor universe,” said Daniel Caplan, European head of global prime finance at Deutsche Bank. “In addition, you may not face the same capacity constraints that you do with a hedge fund product.” (FT)

Link:  361 Capital Weekly Reports Via the Reformed Broker Web Site.