NEW YORK — Institutional and high-net-worth investors have poured at least $1 billion into Arden Asset Management Inc.'s hedge funds of funds since the first of the year.
Arden's assets topped $11 billion as of Feb. 28, a more than four-fold increase from the $2.5 billion the firm managed in May 2003, something that has investment management consultants keeping a sharp eye out for problems with capacity or performance.
The firm experienced a few growing pains as it moved from primarily managing a small pool of high-net-worth assets to handling significantly more money and more institutional money. Sources said those changes range from having to close its first two hedge funds of funds and open cloned versions, to a significant "talent upgrade" in the second half of last year and coping with four senior executives leaving within a few months of each other.
Getting information about Arden is not easy. Asset information included here was culled primarily from news releases issued when the firm brought on new people.
Averell Harriman Mortimer — the firm's founder, president and chief executive officer — is the great-grandson of a railway tycoon and the grandson of a New York governor. He formed Arden in 1993 to manage family money. His own roots and those of the firm are deep in the high-net-worth community, a legacy that sources said has made the firm more secretive than similar firms that now serve a large institutional client base.
Mr. Mortimer declined multiple interview requests and did not make other Arden executives available for comment.