Fri, Jun 23, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Laven Partners comments on confusion over hedge fund administrator role

Thursday, January 17, 2013

Beverly Chandler, Opalesque London: Laven Partners chief executive officer, Jerome de Lavenere Lussan, has commented on the role of fund administrators in hedge funds, saying: "There is confusion in the hedge fund industry regarding the responsibilities of hedge fund administrators. Investors believe that administrators are responsible for providing valuation and accounting services to funds, in reality however the role of administrators is limited to the aggregation of data inputs when striking the NAV. In most cases the administrators are not questioning the pricing of underlying assets, leaving that responsibility to other counterparties, such as managers, brokers and auditors."

The firm draws attention to the fact that in the wake of a hedge fund fraud, the fingers would usually be pointed at the investment management company of a fund, which is ultimately responsible for the day-to-day operations of the investment vehicle. "Perhaps not as widespread, but certainly as interesting, is the case of hedge fund administrators being sued as part of their involvement in providing certain services (or lack thereof) to the industry, such as calculating the Net Asset Value ("NAV") of a fund" the firm writes.

"Recently, in the case of Weavering Capital (UK) Ltd ("Weavering"), the liquidator Grant Thornton has sued Dublin-based BNY Mellon Investments Servicing International, previously known as PNC Global Investment Servi......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Comment: For emerging market debt, a sustainable recovery[more]

    Matthias Knab, Opalesque: Standish Mellon Asset Management Company writes on Harvest Exchange: After several difficult years, the outlook for emerging market debt (EMD) denomin

  2. J.P. Morgan Global Alternatives raises distressed shipping fund[more]

    From Institutionalinvestor.com: J.P. Morgan Global Alternatives has closed a $480 million fund to invest in distressed shipping assets, attracting capital from pensions, endowments and insurance companies. The firm, which has been investing in maritime for more than a decade, initially targeted $400

  3. FinTech - Rise of robots: Inside the world's fastest growing hedge funds[more]

    From Bloomberg.com: Believe the hype. Quants have never been more popular. After doubling over the past decade, assets run by so-called systematic funds have hit a record $500 billion this year, according to estimates from Barclays Plc. In some ways, their meteoric rise is due to the same technolog

  4. Legal - Bond market concerns could scuttle Paulson's Fannie-Freddie plan[more]

    From Bloomberg.com: A hedge fund proposal for freeing Fannie Mae and Freddie Mac from U.S. control is poised to face stiff opposition from investors who say it risks wrecking the mortgage-bond market. The Moelis & Co. blueprint, which firms including Paulson & Co. and Blackstone Group LP sponsored,

  5. Other Voices: Are your pricing policies and procedures for less liquid instruments adequate?[more]

    Komfie Manalo, Opalesque Asia: The unrelated position mismarking incidents that quickly precipitated the closures of both Visium Asset Management and Marinus Capital have been recent focal points for market participants, but regulatory scrutiny of valuation choices for less liquid instruments is