Article on the resurgence of Cap-intro from the Hedge Fund Alert website.
The article offers evidence that the big Prime Brokers are ramping up their programs including Credit Suisse, Merrill Lynch (which I gather is still referred to as Merrill Lynch) and Morgan Stanley. The format appears to be to feature big name funds to draw in the investors and the investors are coming…120 here…140 there…standing room only, etc.
I agree with Sal Campo’s take:
“… Sal Campo, a partner at Conifer Securities in New York who previously headed capital introduction for Citigroup, said prime brokers are playing up big-name fund managers at cap-intro events because those are the banks’ most profitable clients. “It’s less of a function of large managers looking for money – as they’ve always looked for new money – and more of brokers having to focus all their resources on their big clients who pay their bills,” Campo said.
The implications for the rest of the hedge fund universe is that mixed. More activity is certainly a good thing but who wants to go on stage after Paulson?
Hedge Fund Alert
April 15, 2009