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November 04, 2003 at 07:00 PM
CHARLOTTE, N.C. (HedgeWorld.com)–Bank of America Corp.’s US$47 billion purchase of Fleet Boston Financial Corp., Boston, will bring together established hedge fund operations through Bank of America’s BACAP Alternative Advisors LLC and Fleet’s indirect partial ownership of Grosvenor Capital Management LP.
It’s unclear at this stage how, if at all, the two firms will meld their respective money management operations, including hedge funds. A spokesman for Fleet declined comment on its hedge fund unit and ownership of Grosvenor. Officials for Bank of America and Chicago-based Grosvenor were not available for comment on the planned merger.
BACAP manages more than US$700 million in hedge funds, while Grosvenor manages US$4.8 billion in discretionary assets and US$5.3 billion in total, according to government filings.
Subsidiaries of the two companies have registered to sell hedge funds under the supervision of the U.S. Securities and Exchange Commission. In April BACAP registered to sell BACAP Alternative Multi-Strategy Fund LLC Previous HedgeWorld Story, though there’s no indication in the filings that the fund actually has launched. Previously, BACAP had launched BACAP Opportunity Strategy LLC, which had US$35 million in assets as of June 30.
Columbia Management Co., a Fleet investment unit, registered to offer Columbia Management Multi-Strategy Hedge Fund LLC, as of the end of last year . That fund as of March 31 had US$42 million in assets. That fund is subadvised by Grosvenor, which is indirectly owned by Fleet through its substantial investment in Value Asset Management Inc., a Stamford, Conn.-based holding company for investment firms. (Value Asset owns the company that is majority member of the general partner of Grosvenor, according to a filing. Value Asset officials were unavailable for comment on the day of the merger announcement, Oct. 27.)
