UBS is looking to attract outside money to augment its in-house hedge fund, according to a report in Financial News. The report said Dill...

UBS is looking to attract outside money to augment its in-house hedge fund, according to a report in Financial News. The report said Dillon Read Capital Management, the hedge fund set up last year by UBS and managed by John Costas, will launch additional funds to manage outside investor assets. The fund will seek institutional money as well as capital from high net worth individuals. UBS originally invested $2 billion in the fund, most of which is in fixed-income investments. The Swiss bank set up Dillon Read Capital Management partly to deter talented staff from leaving to set up independent hedge funds. Late last year, UBS said it would set aside an extraordinary guaranteed $1 billion in bonuses in the next three years for staff at Dillon Read in a further effort to get star mangers to stay at the bank.