Institutional Investor's Alpha Magazine - October 2008 - (Page 62)

Hedge Fund Turmoil Drives Flight to Quality Reasons to Outsource in an Uncertain Market H edge fund administrators have long touted their competitiveness in terms of people, process and technology, but the credit turmoil has made other service alternative investment industry, downplaying the importance of administrators’ people, process and technology in favor of a more urgent need for global strength and stability from service providers. Now more than ever, hedge funds and their investors want a few trusted partners for diversiﬁed services, in addition to operational excellence. J.P. Morgan is quick to point out it has both. JPMorgan Chase & Co. is a global leader in ﬁnancial services with assets of $2.0 trillion, holding-company level ratings of Aa2/AA-/AA-, and operations in more than 60 countries. The ﬁrm offers hedge funds and fund of funds end-toend asset servicing and outsourcing alternatives, including hedge fund administration, accounting, prime brokerage, and risk analytics, in addition to banking support such as foreign exchange, cash and collateral management and liquidity products. J.P. Morgan’s hedge fund administration business services over $140 billion in assets with operations in Greenwich, CT, Bermuda, Dublin, London, Luxembourg, and Hong Kong. J.P. Morgan’s hedge fund assets serviced have grown at more than 70 percent year over year as of September 1, 2008 in part because of the breadth and strength of its global services. “The global strength of a hedge fund administrator reassures investors that the service provider will be a stable and trusted outsourcing partner to the hedge fund,” explains Robert Caporale, Managing Director of J.P. Morgan Alternative Investment Services. “Reducing counterparty risk has become a high priority provider strengths top of mind for hedge funds and their investors. In any market, one of the key advantages of outsourcing is access to tenured hedge fund professionals who provide dedicated, day-today support and oversee operations. The best administrators offer a deep bench of industry talent with signiﬁcant experience perfecting operational processes. Leading hedge fund administrators also continuously invest in their technology capabilities, leveraging an economy of scale and a pipeline for best practices that few hedge funds could match on their own. Hedge funds that outsource achieve an efﬁcient ﬁnancial reporting infrastructure and access to best-in-class technology while maintaining their focus on what’s most important to their business – creating investor wealth. September brought many challenges to the Hedge funds that outsource achieve an efﬁcient ﬁnancial reporting infrastructure and access to best-in-class technology while maintaining their focus on what’s most important to their business – creating wealth. 1 • Alpha Sponsored Statement • October 2008

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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