FRTL-New Company Envit Capital-Boston based Hedge Fund-
SEC filings show Boston is a leader in hedge funds
By Ross Kerber, Globe Staff New federal filings show that Massachusetts financial firms help manage more than $150 billion in hedge funds and other private investments, about 10 percent of the $1.5 trillion that the Securities and Exchange Commission estimates is held in private funds nationwide.
The filings, many available for the first time under new SEC rules that require hedge fund advisers and other managers of private funds to report data to the government, shed only a little light on this fast-growing, lucrative, and secretive corner of the world of money management.
While regulators couldn't provide figures showing where Massachusetts ranks compared to other states, the filings show that Boston is a major center of private investment.
'Boston has historically been one of the largest players in the hedge-fund industry, because the city has a tremendous pool of talented managers in the financial-services sector," said Richard A. Goldman, coleader of the hedge fund practice group at law firm Bingham McCutchen.
Scott Stewart, a Boston University finance professor, says hedge funds are a natural step for a local financial-services sector that began with insurance companies, then progressed to mutual funds and money-management. 'The hedge-fund business is a natural outgrowth of the firms that are here, and their people who leave to set up their own firms," he said.
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