The Times reports that UBS's wealth management division has been so 'ravaged' by the departure of 75 London-based staff for newly-established firm Vestra Wealth, that one of its teams only had a secretary left! (Let's hope she elected to stay put, rather than being the only one Vestra didn't want!!).

UBS was in the UK High Court Friday, trying to obtain an temporary injunction against Vestra, and asking for the firm to be banned from poaching UBS clients for a year. According to the newspaper, lawyers acting for Vestra, which is 25% backed by Goldman Sachs, entered into evidence correspondence obtained from the firm's former UBS employees, who claim that the bad publicity UBS has had following its huge US subprime lending-related exposures has made some wealth management clients nervous about dealing with the bank.

Judgement on the application is expected Monday.

Reuters reports that Basso Capital, the $2.8bn hedge fund, has upped the ante on its staff, after looking at losses in all three of its strategies this year. According the news agency, the fund sent a letter out to investors saying that it had 'made it clear to certain members of the investment team that they need to achieve certain quantitative goals to warrant the retention of their seat on the trading room and position within Basso'. Firm founder Howard Fischer said that he had discussed with his management team the idea that the 'ideal employee' should come to work with the view that 'if I'm not excellent today, I may lose my job'.

The news agency also reports that Highlander Crusader Fund, a $2.3bn hedge fund which invests in distressed assets, has advised investors seeking redemptions that it will repay funds in the coming months. The fund is thought to be around 15% down this year.

The New York Post reports that most of New York's top 100 hedge fund bosses are getting 'flattened' as a result of the credit crunch. Many principals, who bagged $100m pay-packs in 2007, are said to be struggling to get out of the red this year, meaning that they will have to get by on just a 2% management fee in 2008 - unless things pick-up before the year-end.

Finally, the newspaper reports that the smart money thinks that the recent move by private equity firm Kohlberg Kravis Roberts & Co (KKR) to go public is a prelude to a bid for a hedge fund or investment bank. After around 30 years, it seems, KKR might want to diversify.

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