Alpha - September 2007 - (Page 31)

Hedge funds are expanding into new and more complex areas of investment. The result is a greater need for such services as collateral management, loan servicing, derivatives margin management, corporate trust and fund administration. world. And its Broker-Dealer services business is a leading provider of global collateral management and securities clearance services. “More and more of our hedge fund clients are acting like our broker-dealer clients – demanding split-second servicing, streamlined processes, and a proactive approach to helping them grow their business,” explains Art Certosimo, Executive Vice President and Head of Alternative Investment and Broker-Dealer Services.“As we see our clients evolving in this way, we believe there is a benefit to aligning our alternative investment and broker-dealer services business to ensure we stay ahead of the trend and address their needs as they evolve.”This is the driver behind The Bank of New York Mellon's decision, unlike other providers, to house the alternative investments servicing team with the broker-dealer services business. As a result, the company is “uniquely positioned to understand and facilitate the connectivity between the three sides of the functional service relationship,” says Ruane,“the hedge fund, the bank, and the prime broker.”The goal is to partner with the client, anticipate its needs in a changing market, and create solutions that are the highest quality in the business. A review of The Bank of New York Mellon’s client base reveals it to be widely representative of the industry itself. “Our clients represent the full spectrum of hedge fund strategies: traditional long/short equity, convertible arbitrage, fund of hedge funds, derivative-based strategies, loan and loan-related products, CDOs,” says Marina Lewin, Managing Director and Head of US Relationship Management and Sales for Alternative Investment Services.“We can service all of these approaches, and we're prepared to make the necessary investment as the market changes.” It helps that The Bank of New York Mellon offers the three core services that hedge funds need – asset servicing, cash management, and issuer services – under one roof. “Every day we work with our clients at a high level to determine what they need to support and grow their business,” notes Ruane. The global team can draw on an unparalleled range of resources to solve specific hedge-fund client needs. “We are seeing sharply increasing demand for our unique global business solutions mix from clients in Europe and Asia/Pacific,” says David Aldrich, Managing Director of The Bank of New York Mellon’s hedge fund servicing business in Europe. “That's because hedge fund managers are seeking capital from outside their home region as well as expanding into new strategies and markets.”The plan is to continue to expand teams in Europe and Asia as clients rely more and more on local expertise and servicing. Institutional Investment in Hedge Funds by Country/Region 2005 Institutional Hedge Fund Assets (Total: $361 billion) 5% 2% 8% 8% 11% 25% 41% USA Japan Europe, ex-UK Middle East UK Other Australia 2006 - 2010 Projected Institutional Net Flows into Hedge Funds (Cumulative Net Flow: $510 billion) 4% 7% 9% 36% 14% 14% 16% USA Japan Europe, ex UK Middle East UK Other Australia Source: The Bank of New York and Casey, Quirk & Associates analysis As hedge funds' investment strategies expand,The Bank of New York Mellon team puts more resources toward product innovation. Certosimo states, “As private equity, hedge funds, and 130/30 strategies grow exponentially, we are expanding our servicing offerings with one key goal: impacting our clients’ bottom line so that they can generate absolute return.” Contact information: David Aldrich at 011 44 207 964 6428 Marina Lewin at 212-815-6973 Orla Nallen at 212- 635-6703 www.bnymellon.com Within The Bank of New York Mellon, DPM Mellon, LLC and its subsidiaries offer hedge fund administration services while The Bank of New York offers both fund administration and broker-dealer services. September 2007 • Alpha Sponsored Statement • 2 http://www.bnymellon.com http://www.bnymellon.com

Table of Contents Feed for the Digital Edition of Alpha - September 2007

Contents Letter from the Editor Longs & Shorts Pension Corner: Keeping the Faith The Good Guys: Going Public Interview: Barry Bausano - A Delicate Balance Cover Story: Cruel, Cruel Summer Profile: Phil Cooper - Alternative Flight Plan Strategies: Marshall Wace - TOPS in Its Field Profile: Fortis Investments - Banking on Alternatives Research Center: Top Equity Trading Firms Alpha Bytes: Desktop Duel Unhedged: Commentary - The Taxman Cometh

Alpha - September 2007

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