Investor, Regulator Demands To Spur Outsourcing In ‘07

Jan 8 2007 | 12:10pm ET

Operational scrutiny of hedge funds will continue to intensify this year due to demands from investors and regulators, leading to increased outsourcing, according to Conifer Securities, a provider of business and operations support to hedge fund managers, family offices, foundations and endowments. 
  
Conifer identified investors' growing desire for separately managed accounts as one area in particular that will require managers to have a more robust and complex back office capability.

"Evolving investor and regulatory demands have made managing a hedge fund business a lot more complicated," said Philip Stapleton, president and CEO of Conifer.  "As managers want to, and need to, spend their time managing assets, the outsourcing of non-investment functions will proliferate in 2007."

Conifer also noted that demands for independent pricing and more transparency are forcing managers to use third-party administrators, a practice that has long been the standard in Europe and is now becoming the norm in the U.S.  

"With more funds competing for assets from a much more discerning investor base, operational integrity is becoming just as important as performance," added Jack McDonald, Conifer executive vice president.

Conifer is headquartered in San Francisco with offices in New York, Boston and the British Virgin Islands.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.