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Alternative Market Briefing

Partnerships and acquisitions in managed account space shows expectations of further asset growth

Thursday, February 24, 2011

From Kirsten Bischoff, Opalesque New York:

Managed account firms found themselves in the spotlight after the liquidity crisis in the hedge fund industry had many investors looking for a way to maintain more control over their investments. In the months since, as the financial markets grew stronger and performance stabilized, managed accounts maintained a higher stream of inflows, but faded from the media spotlight. More recently, managed account platforms seem to be enjoying an uptick in interest from major investors. First, in early February BNY Mellon’s Pershing Unit announced it would acquire managed account platform HedgeMark, and late last week Duff & Phelps and investment firm Harcourt Investment Consulting announced they had made equity investments in WR Managed Accounts.

The investments into WR Managed Accounts was announced with a strategic partnership between all three firms.

Their outlook for gathering assets is strong and WR expects to continue to see services driven by pensions, endowments and fund of funds. “Fiduciaries increasingly demand transparent, accurate and timely information with respect to hedge fund performance and risk, as well as certainty with respect to the custody and accessibility of their assets,” Andrew Weisman, CEO of WR told Opalesque.

For WR’s part, the partnership will provide a......................

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