Hedge Funds Investing in Other Hedge Funds

Reported 7 months ago

Veteran investor Jonathan Heller launched his own hedge-fund firm, Helix Partners Management, with $1 billion from Izzy Englander’s Millennium Management. This trend reflects the growing amount of capital in the hedge-fund industry, with top 20 managers capturing 83% of total gains. Many mega hedge funds are allocating billions to other firms, particularly multimanager firms funneling money to numerous investment teams, while some like Citadel are exceptions preferring internal talent development. Seeding new hedge-fund firms provides a way for multimanagers to profit and control external investments, such as by Millennium investing in Kodai Capital Management and Taula Capital.

Source: YAHOO

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