Bigfoot hedge funds capture capital

The 100 largest hedge funds now control about 70% of capital, up almost 20% in from 2003, according to Morgan Stanley's prime-brokerage unit, says a Wall Street Journal report. What’s more, the 300 hedge funds with $1 billion or more control about 85% of all the money in the business. Last year, new hedge funds raised $10.5 billion, as opposed to the $18.7 billion they hoped to raise, said the Journal, citing Morgan Stanley figures. "Larger, longer-established funds are increasingly capturing capital -- squeezing smaller funds and making it difficult for new start-ups to raise capital," said Robert Discolo, managing director at AIG Global Investment Group, a unit of insurer American International Group Inc. that invests about $8 billion in hedge funds, in the Journal.