BNY Mellon is closing down one of its three hedge fund-of-funds units, Ivy Asset Management.
Pensions and Investments has the news:
BNY Mellon is terminating Ivy employees and encouraging existing clients to move their investments to the other two units, confirmed multiple industry sources who asked for anonymity.
The only people this is good news for are Ivy’s competitors. Ivy Asset Management was one of the most respected hedge fund of funds managers in the industry and it started out as a $15 billion business. Now its assets are down to ~$2.5 billion.
The news of their terminating the entire fund follows news in January that the company restructured much of their executive board.
In a letter to investors at the time, Sean Simon, the firm’s co-president, wrote:
“Today’s market realities force us to scale our costs to a consolidated business and reduce professional staff.
“We anticipate significant consolidation in the hedge fund industry, marked by big winners, more failures and slow recovery.”
Read the full story on Pensions and Investments.
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