Institutional Investor's Alpha Magazine - October 2008 - (Page 61)

( HEDGE FUND ADMINISTRATION ) VALUED SERVICES AND SUPPORT IN A VOLATILE MARKET t a time of unprecedented volatility in the ﬁnancial markets, hedge funds are relying more and more on back-ofﬁce services and support. In response, administrators are strengthening their professional teams, investing in technology and building dynamic partnerships with key players throughout the industry. “The past 12 months have been grueling due to market conditions and the impact on hedge funds and their investors,” says Bob Wallace, global head of fund services at Citigroup’s Securities and Fund Services in New York. “Increasingly, advisers and investors are seeking more transparency, more information, and with greater frequency. The depth and breadth of the information requests are unprecedented, and we expect this will eventually lead to increased standard reporting.” William Keunen, head of Citco Fund Services (USA) in Miami, says the primary focus in today’s market environment is operational integrity. “As the industry continues to mature,” A BY RICHARD WESTLUND he says, “funds need a recognized independent service provider that can add value through effective checks and balances.” After more than a decade of substantial growth, the hedge fund sector is slowing in 2008, according to Chicago’s Hedge Fund Research (HFR). In a September report, the ﬁrm noted that 240 new funds were launched in the second quarter, compared with 180 liquidations. Overall, hedge funds managed more than $1.93 trillion in investor capital. “The environment of the past 12 months has been characterized by volatility, performance dispersion and asset consolidation toward the largest hedge fund ﬁrms,” Kenneth J. Heinz, president of HFR, stated in that report. Another sign of increased market activity: Message trafﬁc on the international SWIFT platform – including payments, settlements and credit transfer messages – increased 22.2 percent in 2007. A member-owned cooperative, SWIFT provides the communications platform and services to connect more than 8,300 ﬁnancial institutions around the world. In this turbulent environment, the role of the administrator (continued on page 4) October 2008 • This Sponsored Report was prepared by the Special Projects Department of Alpha and written by Richard Westlund, a journalist based in Miami.

Table of Contents Feed for the Digital Edition of Institutional Investor's Alpha Magazine - October 2008

Institutional Investor's Alpha Magazine - October 2008 Contents Letter from the Editor Longs & Shorts Pension Corner: Process of Evolution The Good Guys: Israel's Champion Interview: Fast Lessons for Hard Times Cover Story: Industry Under Siege The New Hedge Fund Economics Good-Bye, Easy Money Caging the Shorts Strategies: Bottom Fishing Profile: Cult of Personalities Research Center: Alpha Awards: Eye of the Storm Alpha Bytes: Funneling the Chatter Unhedged: Commentary: Attention, Hedge Fund Shoppers

Institutional Investor's Alpha Magazine - October 2008

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