Wednesday, 27 May 2015
Last updated 53 min ago
Jan 7 2009 | 1:01am ET
At least one big hedge fund is offering what might be called a constructive response to the Bernard Madoff scandal: greater transparency.
New York-based Millennium Management has hired GlobeOp Financial Services to serve as an independent administrator for its three hedge funds. GlobeOp will provide independent confirmation of cash and position reconciliation, pricing and valuating, net asset value calculation, financial reporting, and share register and transfer agency services. The new arrangement took effect on New Years Day.
“We are sending a strong signal about our commitment to transparency and the independent validation of Millennium's portfolio positions, asset pricing and expense allocation by appointing GlobeOp as an independent administrator, and by increasing our online investor portfolio reporting,” said Terry Feeney, co-president and chief operating officer of Millennium.
GlobeOp is no stranger to Millennium, having provided valuation, share registry and transfer services to the Millennium International fund for more than two year.
Moves such as Millennium’s may be the closest thing to a silver lining in the suspected $50 billion Ponzi scheme that counts many hedge funds among its victims. But it’s also clear that Millennium saw the writing on the wall: The world’s largest hedge fund allocator, Union Bancaire Privée, announced last month that it would not invest with some hedge funds unless the appointed an independent administrator. Millennium was on the UBP blacklist, alongside fellow industry heavy hitters Caxton Associates, Citadel Investment Group, Cerberus Capital Management, Renaissance Technologies and SAC Capital Advisors.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by partcipating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…