Hedge Fund Hotshot Banks on M&A Wave

The frothy bank M&A market has got one hedge fund manager, Cutler Capital Management, rooting for more deals in the sector.

The Worcester, Mass.-based investment firm, which has $250 million in assets under management between two hedge funds and individual accounts, has scooped up positions in what it sees as the most likely of acquisition targets -- community banks.

Like many observers, Cutler Capital is predicting that intense competition, deteriorating credit quality and pressure on interest income will force many banks to consider selling in the coming months. ...