Thu, Apr 17, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

AlphaMetrix announces first multi-administrator hedge fund platform, and acquisition of Spectrum Global Fund Administration

Tuesday, December 14, 2010
Opalesque Industry Update - AlphaMetrix today announced the acquisition of Spectrum Global Fund Administration, creating the world's largest independent full-service hedge fund platform, with approximately $20 billion in client assets and more than 100 managers. Terms of the acquisition were not disclosed.

With the acquisition, AlphaMetrix also introduced the world’s first multi-administrator hedge fund platform, which allows investors to choose from a pre-approved list of administrators. Among the administrator options is AlphaMetrix360, formed by the acquisition of Spectrum and both firms’ proprietary technologies. The integrated offering will lower platform costs to investors, providing a consolidated base cost for both platform and administration (including daily NAV calculation) of 20 basis points combined.

“AlphaMetrix’s goal is nothing short of revolutionizing hedge fund investing,” said Aleks Kins, CEO. “We constantly strive to give investors the tools they need to maximize returns and minimize risk, with entirely new services and lower costs for improved governance.”

AlphaMetrix made this move to:

1) Strengthen its model of manager governance, which relies on position-level transparency, cash flow controls stemming from a network of multiple unrelated service providers, and near real-time technology;

2) Further empower investors by providing efficient and transparent access to even more top-tier managers while delivering enhanced near real-time reporting and portfolio tools;

3) Reduce service provider costs for investors and managers by offering base platform and administration services, including daily NAV calculation, for just 20 basis points; and

4) Provide managers with access to the AlphaMetrix Investor Network of over 12,000 institutional and HNW investors.

AlphaMetrix is also providing institutional and high net worth investors with more hedge fund investment services via the AlphaMetrix Hedge Fund Platform. AlphaMetrix, which historically has serviced Separate Manage Accounts (SMAs) for large investors and Pooled Managed Accounts (PMAs), will now support a third option: Governed Hedge Funds (GHFs). A GHF leverages AlphaMetrix’s multi-administrator model and proprietary technology to provide its investors with greater governance and near real-time transparency.

“In order to build what amounts to the first true cost-effective governance platform for hedge funds, AlphaMetrix realized that integration with Spectrum Global Fund Administration was an ideal fit,” said David Young, COO of AlphaMetrix and former president of Spectrum. “In short, AlphaMetrix has spent years developing proprietary technology for front and middle office operations, with a focus on near real-time investor reporting, risk management and portfolio tools, while Spectrum has spent the last 12 years building its own proprietary back-office general ledger and reporting technology.”

Combined, the technologies offer the first available straight-through-processing capabilities from trade to portfolio management, which means AlphaMetrix can provide investors with a fully loaded daily NAV and all of the services of a Platform (transparency, risk management, due diligence, research and portfolio tools) for the efficient base cost of 20bps.

(press release)

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Banner
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. Opalesque Exclusive: European stock-picking fund up 19% YTD, bets on small caps’ high cash level[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Here is a European long/short equity fund that has been beating the odds since its 2008 inception by employing its own investment model, frequent company visits

  2. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  3. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  4. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo

  5. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an