UBS to shutter hedge fund

UBS AG will close its two-year-old Dillon Read Capital Management hedge fund unit, the bank said today according to published reports.
MAY 03, 2007
UBS AG's will close its two-year-old Dillon Read Capital Management hedge fund unit, the bank said today according to published reports. The Zurich, Switzerland-based bank said that its investment banking division was reintegrating the hedge fund’s portfolios and that third-party funds would be redeemed, said reports. “Operating a proprietary trading platform outside the investment bank and managing client money alongside became too complex and expensive," chief executive Peter Wuffli said in a statement, according to Reuters. "The DRCM initiative did not meet our expectations." Dillon Read reportedly managed $1.5 billion in an outside fixed-income fund and more than $3 billion of the bank's own money in the internal fund.

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