Beverly Chandler, Opalesque London: The group of hedge fund CFOs, COOs and service providers who make up the Hedge Fund Operational Peer Group has published a white paper entitled Service Provider Selection and Co-Sourcing: The Keys to Establishing a Cost Efficient and Institutional Quality Hedge Fund
The paper includes a range of pieces from a number of firms drawn from the legal, accounting, prime brokerage, compliance, administration and technology services and is designed to provide managers with a working solution for how to develop an institutional infrastructure for hedge funds, in a cost-effective way.
The paper opens: "The current state of regulatory affairs and investor due diligence and transparency demands (particularly in the aftermath of several high profile
frauds) has created an onerous and potentially expensive environment in which to manage a hedge fund. As a result of these increasing
demands, new and established hedge fund managers have to develop institutional quality infrastructure if they want to grow and attract
new monies. Meanwhile, the amount of capital available to develop the infrastructure at most hedge fund managers has vastly diminished.
Fees have compressed and the AUM available at launch ......................
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