Hedge Funds Starting To Resemble 'Mini-Banks' With Addition Of Financing, Insurance Services, Reuters Reports

In their search for increased revenue, many hedge funds seem to be looking outside their traditional realm of stock and bond markets by adding services usually left to banks to their product lineups, Reuters reports. In a July 3 article,

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In their search for increased revenue, many hedge funds seem to be looking outside their traditional realm of stock and bond markets by adding services usually left to banks to their product lineups, Reuters reports.

In a July 3 article, Reuters says an increasing number of hedge funds are turning to infrastructure financing and private equity – all areas where many have been active for several years.

Hedge funds’ advances into the world of traditional banking may be aided by the tendency of large banks to maintain an apathetic mindset in regard to small or sometimes even medium-sized companies.

Many banks have preferred to aim their businesses at heavyweight companies, who tend to offer the highest returns.

But the smaller businesses left behind represent an appealing yet under-served segment of the market that many hedge funds are scooping up and cashing in on.

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