Bailey Coates: The bill please

One view associated with the hedge fund boom years was that a firm should raise as much money as possible – ideally at least $1bn (£540m). The idea is that scale economies help a firm ride out tough times. It’s even been advanced as an argument for consolidation. And if this is really true, Bailey Coates is in a spot of bother. The London-based firm has seen client assets almost halve to $750m, and has since started to scale back its workforce. In reality, the firm could survive with much fewer...