Hedge Fund Administration & Operations
The article comments on the recent trend over the last couple years that hedge funds have moved into more complex mid- and back-office operations. This trend has occurred because funds have to keep up with the increasingly complex instruments and technologies competitors are using, as well as the recent burden of new corporate regulations along with Sarbanes-Oxley. This increased complexity in hedge fund administration has led to an up tic in outsourcing fund services.
Hedge funds see this out-sourcing of mid- and back- office duties to fund administrators as a way to keep focusing on the fund’s investment strategy, leaving the hassle to fund administrators. The article then accounts CitiGroup and JP Morgan’s move toward bolstering fund administration services as a way to capitalize on the growing out-sourcing. Some investors may also be comforted by the idea of a major firm like JP Morgan or Citi servicing their fund, the article suggests.
Source: Finance Tech
