UBS May Sell World’s Largest Hedge Fund Investor

Post by NeilMc on April 22, 2009 · Under Business News, Company News, Equities, International Business News, Wealth Management, banking · Comment

Swiss newspaper reports on Tuesday suggests that troubled banking giant UBS many end up having to sell a business unit which acts as the biggest single hedge fund investor in the world.

The unit known as Alternative and Quantitative Investments has 30.1 billion Euros of assets under management, dwarfing other fund of fund or hedge fund investors globally.

The report, by Swiss newspaper the Zuercher Zeitung did not obtain comment from the Swiss banking giant on its report and did not cite its sources.

The bank’s chief executive Oswald Gruebel warned last Wednesday that the bank would “become smaller,” and that the group would look at which businesses it would drop.

At the start of the month UBS announced that there would be a global cull in its work force in the region of 8,700 people.

On Monday, it announced the sale of its Brazilian unit UBS Pactual for $US2.5 billion ($A3.58 billion) to Brazilian investment company Banking and Trading Group.

Switzerland’s biggest bank has been struggling to recover after losing billions in the financial crisis.The bank is scheduled to post its first quarter earnings on May 5

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