Barclays PhD’s Build Hedge Fund Giant Inside No. 3 U.K. Bank
Jan 5th, 2007 | Filed under: Institutional InvestingBy: Edward Robinson, Bloomberg News
Published: January 5, 2007
This article provides an interesting follow-up to a Barron’s piece in October on BGI’s “Triumph of the Nerds” that also discussed the Genesis of BGI - a team that included William Sharpe, Eugene Fama, Fischer Black, Myron Scholes, & Barr Rosenberg. Not since the movie “The Breakfast Club” have so many cast members gone on to achieve such celebrity.
Not surprisingly, BGI agrees the line between hedge funds and long-only investing is an artificial one.
“Institutional investing is undergoing radical change, according to (Blake) Grossman (BGI CEO)…’We think this artificial divide between long-only and long/short is one that’s destined to become extinct over the next several years,’ Grossman says.”
BGI’s bifurcated alpha/beta approach (i.e. hedge funds/ETFs) has sent its stock skyward, prompting some analysts to speculate about where the firm will be an acquisition target.
“BGI and Barclays Capital have helped make its British parent a potential hot property. On Dec. 11, Barclays rose to a then- record of 746.50 pence a share after Merrill Lynch & Co. analysts Brian Bedell, John-Paul Crutchley and Edward Najarian wrote to investors that Bank of America Corp. might be interested in buying the bank.”
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