CAPACITY PROBLEMS: Institutions finding cold shoulders as they seek to embrace hedge funds.

Pensions & Investments, March, 2001 by Williamson, Christine

Institutional investors are discovering that hedge fund managers might not accept all the money that the investors will throw at them. ``Pension funds are used to managers who will do anything to get their money. Hedge fund managers, typically, won't do anything to get their money and don't even want it,'' said Robert Shulman, president and chief executive officer of Tremont Advisers Inc., Rye, N.Y.

Tremont, a hedge fund advisory firm, invests about $9 billion in fund-of-funds strategies. One solution to the capacity problem might be a two-tiered system - institutional and retail - similar to the one that developed in the mutual fund industry in response to demand from 401(k) plans. ``Capacity in this industry is absolutely a problem,'' Mr. Shulman said....

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