Hedge fund seeding attracts big names

For all its woes, the hedge fund industry remains in growth mode. If you can find a big winner, you're in good shape. Frankly, everyone is looking for the next Paulson & Co., which had a monster 2007. To home grow some winning funds and get in early, AIG Investments has decided to get into the hedge fund seeding game. According to the New York Post, the investment arm of AIG, which currently manages over $10 billion in hedge fund assets, has formed a venture to invest up to $200 million in new and emerging hedge funds with Larch Lane Advisors. Seeding is attracting more big names these days, the likes of the Blackstone Group and Citadel. But not all have been successful in such efforts. The Post notes that MFS and Jefferies were forced to scale back. Still, the payoff for those few killer funds would be worth it.

For more:
- here's the New York Post article

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