CSFB Looking For Larger Slice Of The Hedge Fund Pie

by Phillip Morton, Investors Offshore.com

16 March 2004

Investment bank Credit Suisse First Boston has revealed that it intends to increase the number of hedge fund clients it works with by 50%, according to Reuters.

With currently around 200 hedge fund clients, CSFB has a relatively small slice of the hedge fund cake compared to competitors such as Goldman Sachs and Morgan Stanley. However, the firm has indicated that it wants to take advantage of the continued growth anticipated in the industry, predicted to reach a value of $1.5 trillion in the next ten years.

The bank informed Reuters in an interview that it will place a heavy emphasis on Europe as part of its growth strategy, in addition to building upon existing arrangements, such as the exclusive deal it has with the California Public Employees' Retirement System (CalPERS), which has given the firm the right to borrow $50 billion in stock.

However, the CSFB has made clear that it intends to remain selective as to which hedge funds it does business with. The bank has recently turned down around 40% of approaches from European hedge funds.

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