High-net-worth individuals dissatisfied with their private banks’ meagre offerings of alternative investments have in the past turned largely to funds of hedge funds. But a recent shift by some private banks to develop portfolios of hedge funds threatens to draw those assets back to the original gatekeepers.
Private banks have often struggled with the idea of dropping in-house investment management of traditional assets such as bonds and equities for a truly open-architecture, third-party approach. But they have understood that, although clients might buy the notion that they have in-house expertise in traditional assets, no...
