Bloomberg: Asia-focused hedge funds that were started with the help of a major backer after the 2008 credit crisis are shutting down as a shrinking pool of key investors makes it harder for them to raise capital.<\/p>\n
Isometric Investment Advisors Ltd. decided in December to close after its largest startup investor said it would withdraw its cash. Black\u2019s Link Capital Ltd. closed after its biggest investor, a U.S.-based fund of hedge funds, pulled its capital last year, said two people with knowledge of the matter.<\/p>\n
New hedge funds that began trading after the collapse of Lehman Brothers Holdings Inc., including those run by refugees from investment banks, were expected to lead a revival for the industry. Instead, managers with more than $5 billion have lured the bulk of allocations, while a more recent crop of large startups are diverting investors from smaller competitors.<\/p>\n
\u201cFunds of funds have traditionally been early-stage investors,\u201d said Sam Tabar, head of Asia-Pacific capital introductions at Bank of America Corp. (BAC)\u2019s Merrill Lynch & Co. unit. \u201cAs this sector has retracted somewhat, it has made it more difficult for some managers to move from startup phase to critical mass.\u201d<\/p>\n