Morning Coffee Mar 13 2012

Warning: Consolidation Ahead

By julie steinberg

Even though some large and well-off hedge funds will be able to hire this year, that may not be the case for smaller shops in the industry. After failing to bounce back from the financial crisis, some will have to shut down while others look for buyers, Financial News reports.

The hedge fund industry, which now manages more than $2 trillion in assets, has suffered in recent years. The average fund lost 5.3% in 2011, after being up 10.3% in 2010 and 20% in 2009.

More rivals are joining the scene as traders leave firms in the wake of financial reform regulation and start their own shops. Yet investors are still giving their money to larger firms, or those that have more than $5 billion in assets under management. Last year, 70% of new money flowed to the bigger shops.

The effects can be drastic: London-based Caliburn Capital laid off half its staff, about 16 employees, closed its office in Geneva and moved to smaller digs in London.

With continued industry weakness, it doesn't look like Caliburn will be the exception.

Keeping Your Mouth Shut (FINS)

We can declare unequivocally that you should never say any of these things in a job interview.

Insurance Hiring (Milwaukee Business Journal)

Wisconsin-based insurer Acuity is hiring 50 employees after a strong growth rate in 2011. The insurer will hire processors, underwriters, claims professionals and others.

Expansion in Boston (Boston Herald)

Bank of America is adding 40 small business bankers to its ranks in Boston, part of a national plan to increase small-business banking hiring.

India's Surge (The Times of India)

Goldman Sachs will host its annual board meeting in India for the first time at the end of the month. The decision to locate the meeting there signifies the country's importance to Goldman's international plans.

Moment to Shine (PR Newswire via MarketWatch)

CME Group Chief Executive Craig Donohue, who has served in that role since 2004, will step down once his contract expires at the end of the year.

Switching Seats (Deal Journal)

The Goldman merry-go-round keeps churning. The firm named three executives to be co-chief operating officers of equities. It will be interesting to see how the unit fares under a triumvirate.

And Now a Message From (The Wealth Report)

Chicago hedge fund titan Ken Griffin may want to give Leon Cooperman a call: He's lending his voice to the wealth cause in today's political debate.

Buzz Around the Office

Japan Rebuilds (YouTube)

A look at Japan's coastal towns one year after the tsunami and earthquake hit.

List of the Day: Faking It

When you don't know much about the sport you're attending with a client, the situation calls for faking it.

1. Ask intelligent questions and let the client show off.

2. Don't lie about being a die-hard fan if you're not.

3. Drink what everyone else is drinking.

(Source: The Daily Muse)

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