UBS may sell hedge fund unit
To reduce its size, the Swiss bank may sell a unit that is the world’s biggest investor in hedge funds.ZURICH - Swiss banking giant UBS may sell a unit that is the world’s biggest investor in hedge funds in efforts to reduce their size, a Swiss newspaper reported on Tuesday.
The bank could sell its "Alternative and Quantitative Investments" business, the sector's biggest investor with USD 39 billion (CHF 45.6 billion, EUR 30.1 billion) worth of assets under management, the Neue Zuercher Zeitung reported.
UBS did not comment, said the newspaper, which did not cite any sources.
The bank's chief executive Oswald Gruebel warned on Wednesday, 15 April that the bank would "become smaller," and that the group would consider which businesses to sell.
On Monday, it announced the sale of its Brazilian unit UBS Pactual for USD 2.5 billion to Brazilian investment company Banking and Trading Group.
Switzerland's biggest bank is struggling to recover after losing billions of francs in the financial crisis.
It announced earlier in April plans to cut 8,700 jobs to reduce costs, and will report losses of around CHF 2 billion for the first three months of 2009.
The bank is scheduled to post its first quarter earnings on 5 May.
AFP / Expatica