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From Kirsten Bischoff, Opalesque New York:

Hedge fund administrators have been direct beneficiaries of the swelling assets under administration within the hedge fund industry. With third party administrators considered a "best practices" requirement by most investors, asset growth at administrators has seen a steady climb as the industry has recovered from the financial crisis. US hedge funds have grown by 10% in the past year to $1.29tln (according to Absolute Return) and the team at Dow Jones/Credit Suisse estimates that current global hedge fund industry assets under management are at $1.7tln (up from $1.5tln in 2009).

"Growth at administrators has a lot to do with existing clients raising money, as opposed to large mandates being signed," comments Dan Golyanov, Director of Research at Carbon360, which publishes the administration industry guide "The Fund Administration Factbook". However, this growth continues to favor the largest hedge funds (the 10 largest hedge funds control over $300bn of the industry's assets) a trend echoed in the fund administration arena. "Asset growth concentrated at the largest administrators is a self-fueling trend. The money is going to the largest hedge funds, and for the most part they all happen to already be at the large fund administrators," Golyanov adds.

GlobeOp and Northern Trust, two "top 15" administrators (according to assets under ad......................

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