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From Kirsten Bischoff, Opalesque New York: Hedge fund placement firms Liability Solutions and MIT Associates announced a merger which will pool both firms’ access to 1,200 institutional investors, and see the companies combine under the name Liability Solutions.

With $12bln in hedge fund assets raised and consulted on since 1987, Liability Solutions sees a rough road ahead, but also a continued increase in assets across the industry. “Some money will leave – but the momentum towards the industry continues,” Mike Finnell told Opalesque.

Finnell, who at the completion of the merger will become President of Liability Solutions Inc, the US subsidiary of Liability Solutions, has been speaking with investors on a daily basis through the tumultuous markets and gave us some insights to his bird’s eye view of investor trends. “I think there will be significant re-allocations in the first half of 2009, but I don’t think you will see a dip in the total industry assets under management between Q4 2008 and Q1 2009. It may be flat as people move money around but I think the numbers will go up but there will be significant allocations between managers and strategies.”

Media reports have placed hedge fund redemptions at anywhere between 10 and 25% between September 30 and December 31st. For Finnell, those reports may represent duplications. Clients whom he has spoken with in the fund-of-funds community are redeeming from b......................

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