By Svea Herbst-Bayliss
BOSTON, March 4 (Reuters) - Hedge fund industry veteranHenry Davis, a senior investment advisor at Aberdeen AssetManagement PLC, is leaving the firm to work for aU.S.-based asset management company, a source familiar with thematter said on Friday.
Davis had been president at privately-owned Arden AssetManagement, a hedge fund specialist, before it was purchased byAberdeen last year.
Aberdeen did not return calls or emails requesting comment.Davis could not be reached for comment.
The deal between Aberdeen and Arden closed in December andwas the latest in a wave of consolidation in the hedge fundindustry where so-called funds of funds - once the middlementhat helped put together hedge fund portfolios for wealthyclients - have been seeing their business model lose traction.
For Aberdeen, headquartered in Scotland, the Arden tie-upboosted its profile in the United States and gave it access tothe lucrative hedge fund industry.
The alternatives unit now oversees some $35 billion inassets and employs about 30 investment staff. Davis will leaveat the end of the month after having helped integrate the Ardenstaff with Aberdeen.
At Arden, Davis was instrumental in bringing hedge fundportfolios to retail clients through a deal with FidelityInvestments and bringing consulting services to pension funds,including the state of Massachusetts, to select hedge fundmanagers including relative newcomers like 400 CapitalManagement and Mudrick Capital Management.
In the tightly knit hedge fund industry, Davis is a highlyregarded analyst who is often featured at industry conferences.He joined Arden, founded by Averell Mortimer in 1993, in 2001and had worked in the firm's research department before becomingpresident. (Reporting by Svea Herbst-Bayliss)