Lehman Revamps Hedge Funds

Lehman Brothers' hedge-fund unit is being broken up within the firm's asset-management business after its head, Jolyne Caruso, said she will leave Lehman at the end of the month.

Caruso's departure precedes the arrival of Lehman's new asset-management chief, George H. Walker, who previously oversaw alternative investment strategies for Goldman Sachs. The Wall Street Journal says Bush has been "consulted on the changes." (Bush is a second cousin of President Bush.) Bush's appointment was announced in May.

The Journal says Lehman's hedge fund business, including its three single-manager funds, will be divided up among the firm's asset-management unit. Its fund-of-funds business will become a part of the private-equity fund group.