Opalesque Exclusive: When you invest money in a hedge fund you trust the fund but that trust has to be verified

Alternative Market Briefing

Opalesque Exclusive: When you invest money in a hedge fund, you trust the fund, but that trust has to be verified - GlobeOp

Tuesday, January 19, 2010

Benedicte Gravrand, Opalesque London:

Ron Tannenbaum, co-founder of global and independent financial administrator GlobeOp, forecasted some of the changes that he expected and their likely impact on the hedge fund industry last week. Hans Hufschmid, CEO of GlobeOp, commented on the forecast.

Distressed assets First of all, Tannenbaum sees "huge investment opportunities" in distressed assets for hedge fund managers interested in longer-term investments. He believes that to manage these complex assets most effectively, scalable data management must be applied, along with complex asset experience and the capability to independently price and reconcile.

"The opportunity in distressed assets has been going on since 2009," Hans Hufschmid told Opalesque. "It really comes from the fact that all these banks had to sell assets in order to (redo) their balance sheets. Distressed assets are not necessarily bad assets, but they were badly priced because everybody was selling at the same time. That created a great opportunity for hedge funds, because for a lot of these assets, it was just a matter of holding to them to maturity for 2 or 3 years and managing the systemic risks that goes with these assets over the course."

As GlobeOp has been pricing a lot of distressed debt, it had to build an infrastructure to deal with that.

Hedge fund start-ups Tannenbaum observed a wave of hedge fund start-ups towards the end of 2009. He also observed that these new start-u......................

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