Hedge Fund Ramius Capital Downsizing

Ramius Capital, which manages $10 billion in assets, and is run by former Shearson Lehman Brothers Chairman Peter Cohen, is currently downsizing. In recent weeks, Ramius cut its Hong Kong staff, put a portion of its newly renovated high-rise office space on Lexington Avenue in NY on the rental market, and offered its main hedge-fund investors lower fees and other enticements to keep money with the firm, the WSJ reported.

This week, Ramius is downsizing even further. Ramius is told investors that it will close 4 funds with a combined $550 million in assets. Additionally, the WSJ reported that Ramius's biggest fund, the $2.1 billion multistrategy Ramius Fund, could shrink by about $500 million or more if investors stick with plans to pull money.

"Going forward, these strategies will continue to be important allocations in our multistrategy funds and will continue to be managed by the same portfolio teams," a spokesman for Ramius told the WSJ. He said Ramius is streamlining its business in an effort to run the firm more efficiently.

No one knows how much money with stay, since the bigger fund has lost about 23% this year.

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