(The Wall Street Journal) -- Hedge funds are in play. On the heels of a rocky summer for many funds, and as money continues to flow to the industry, more hedge funds are examining the possibility of selling out to larger rivals or big securities firms. Such moves probably will put even more pressure on smaller funds.

Last night, Perella Weinberg Partners LP, the advisory and securities firm formed by star banker Joseph Perella, announced it is purchasing Xerion Capital Partners LLC, a fund that manages about $400 million and has been among the best performers this year. The deal gives Perella's money-management business another strategy to sell to its clients and marks a new leg in the growth of the firm. Terms of the transaction weren't disclosed, though it is likely that the price will vary depending on the performance of Xerion and Perella Weinberg Partners.