Bank of New York's Asset Manager to Wind Down Hedge-Fund Investment Arm
September 24 2018 - 6:11PM
Dow Jones News
By Micah Maidenberg
The Bank of New York Mellon Corp. plans to close a
fund-management subsidiary that invested in various hedge funds, as
demand for such investment vehicles wanes.
BNY Mellon Investment Management, the company's asset manager,
said in a statement Monday it intends to wind down, as a
stand-alone business, a subsidiary called EACM Advisors LLC, a fund
of hedge funds manager. The subsidiary isn't accepting new
investors and $2.1 billion will be returned as investments are
sold, according to BNY.
Des Mac Intyre, BNY Mellon Investment Management's chief
executive for U.S. asset management, said in prepared remarks that
"the overall demand for fund of hedge funds strategies has
diminished."
"Following a market evaluation, we no longer see the fund of
hedge funds category as a stand-alone offer," he added. Mr. Mac
Intyre will assume the EACM Board Chairman role as the venture is
wound down.
Based in Norwalk, Conn., EACM says on its website it began
developing and managing "customized hedge fund portfolios for
institutional and high-net-worth investors" in 1991 and had clients
from across Asia, North America and other regions. Creating custom
portfolios represented more than 70% of the firm's hedge fund
business, the site says.
BNY is also is liquidating its Dreyfus Select Managers
Long/Short mutual fund. EACM served as the portfolio allocation
manager for that investment vehicle, according to the bank.
Two other funds -- focused on small-capitalization value and
small-capitalization growth investments -- will be managed by BNY
Mellon Investment Management. EACM serves as the allocation manager
for both, which combined have assets of $1.8 billion.
A spokesman for New York-based Bank of New York declined to
comment.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
September 24, 2018 17:56 ET (21:56 GMT)
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