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BNY Mellon's Pershing unit invests in HedgeMark with rights to acquire firm over time

Tuesday, February 01, 2011

Richard F. Brueckner
Opalesque Industry Update - Pershing LLC, a BNY Mellon company, and HedgeMark International, LLC announced today that Pershing has made a non-controlling investment in HedgeMark and obtained rights to acquire HedgeMark over time.

HedgeMark offers the first comprehensive, end-to-end hedge fund managed accounts platform in recognition of the substantial institutional demand for alternative investments. HedgeMark's platform features a fully integrated suite of technology modules that include fund due diligence, portfolio construction and back-testing, holdings-based risk monitoring, stress test analytics and a comprehensive compliance surveillance engine. Through the HedgeMark platform, investors can build, analyze and monitor a diversified portfolio of alternative investments while integrating and aggregating alternative and traditional investment risk data.

"HedgeMark is re-defining the role of hedge funds in the managed accounts industry for both institutional and qualified investors and asset managers," said Richard F. Brueckner, chairman of Pershing LLC, "HedgeMark has built an investment solution that speaks to the fiduciary demands of our most sophisticated institutional clients by integrating due diligence, portfolio construction, risk management and multiple levels of position-based monitoring and reporting. These capabilities complement Pershing's core managed account strategy, recently enhanced with the acquisition of PNC Managed Investments, which focuses on providing managed account solutions for broker-dealers and investment advisors to enable them to service their retail and high-net-worth clients."

A recent study conducted by Greenwich Associates and sponsored by Pershing titled "Transparency and Liquidity: The Growth of Separately Managed Accounts in the Hedge Fund Industry" highlighted the growing demand for a better model for investors.

"Transparency, liquidity, control and governance, supported by a robust risk monitoring engine, are the baseline requirements for successful hedge fund investing in today's world," said Kenneth S. Phillips, chief executive officer and founder of HedgeMark. "The HedgeMark platform was built to help financial institutions meet the emerging fiduciary standards, providing what we believe to be the industry's leading suite of tools for building and managing diversified portfolios and monitoring risk."

HedgeMark was founded in 2009 and has offices in Los Angeles and New York. The HedgeMark platform supports a broad range of institutional investors and fund managers, including pensions, endowments, foundations and funds of hedge funds. Additional information is available at www.hedgemark.com.

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