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From Kirsten Bischoff, Opalesque New York:

This is the final article of a four-part series. See Part One here, Part Two here, and Part Three here.

As fund of hedge funds entered 2009 haunted by liquidity issues and the fallout of the Madoff fraud, many began to investigate changing the structure of their investments to managed accounts. However, there has been a noted slowdown in this transition for many of these funds. In most cases this delay is due in part to improved performance in 2009 and to the realization that a major commitment to infrastructure is required to successfully transition to managed accounts.

“It is very difficult to set up a managed account program. People are much more cognizant and appreciative now of what has taken us five years to accomplish,” Sean McGould, President and Co-CIO of Florida-based Lighthouse Partners told Opalesque. “Certainly you can turn to an external platform – but if you are interested in using daily, position-level data, you still need to find a way to aggregate and manage that information.”

Five years ago, long b......................

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