Mon, Sep 22, 2014
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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali