Hedge Fund Mania Endures

The hedge fund business isn't what it used to be, but banks continue to see opportunities here.
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The hedge fund business isn't what it was, but banks clearly continue to see opportunity in this space.

The latest evidence of this comes from

Deutsche Bank

(DB) - Get Report

, which Monday announced it had hired Jeff Knupp from

Morgan Stanley

(MS) - Get Report

to lead its Midwest sales effort for prime brokerage, the division that provides services to hedge funds.

European banks like Deutsche,

Credit Suisse

(CS) - Get Report

and

UBS

(UBS) - Get Report

have lately been moving to take away business from hedge funds, an area that was dominated for several years by Morgan Stanley and

Goldman Sachs

(GS) - Get Report

.

Banks also continue to like having their own hedge funds, as indicated by

JPMorgan Chase's

(JPM) - Get Report

recent decision to buy the rest of

Highbridge Capital Management

, a hedge fund in which it had a 77.5% stake at the end of 2008, according to

Bloomberg

.