Paul Yates, the recently-appointed chief executive of Phillips & Drew, the UBS-owned UK fund manager, said his firm had considered starting hedge funds for institutions but had deferred action for at least six months.
Yates said: "The UK institutional investment market is heavily driven by investment consultants. Until they have got their minds really focused on hedge funds we do not see it as worthwhile investing our time starting them up for institutional investors. But we will have another look in six months' time."
