UK financial services provider Matrix Group has put together their in house funds of hedge funds team. The new team of six is headed by chief investment officer Stuart Ratcliff.

In September, Mr Ratcliff joined Matrix from Collingham Capital Management where he was a partner and senior portfolio manager; his team is now in place.

Three senior analytic and investment staff report to him. Bechara Madi, head of macro and chief economist was previously a senior EMEA and European economist at Morgan Stanley before moving to North Asset Management as partner and head of macro and quantitative research.

Justine Lee, head of operational due diligence, spent the last six years as head of operational due diligence, fund of hedge funds, for First State Investments. The head of credit strategies (who will be named soon) has over 11 years experience in credit analysis and risk management.

In addition, there are two research and investment analysts: Christopher Clarke and Angela Brown will support the team, as well as a marketing and sales department of fifteen professionals.

Mr Ratcliff believes that there is currently something of a Darwinian movement happening in the hedge fund world and that by 2009, only the strongest will have survived.

He believes that the first quarter of 2009 will be a good time to be looking at launching new funds of hedge funds because he will be able to choose managers that have proven themselves in the tumultuous market of 2008 and to avoid those which have been weak on risk control and liquidity management.

Mr Ratcliff believes that there are excellent investment opportunities for generating returns, which the best hedge fund managers will be able to profit from.

Matrix has a range of alternative funds of funds with over $600 million in assets under management and most of these funds are managed externally by companies such as Winton Capital Management and Lyster Watson.

The Matrix Group offers financial services focusing on fund management, investment banking, commercial property and principal finance, and at 30 September had £2.2 billion ($3.5 billion) in assets under management.