Looking for checks and balances
Fri May 1, 2009
Following Madoff, and at the behest of investors, more U.S. hedge funds are hiring independent administrators to prove their operational strength.
Following Madoff, and at the behest of investors, more U.S.
hedge funds are hiring independent administrators to prove
their operational strength
By Carolyn Sargent
It's rare for SAC
Capital Advisors and Viking Global Investors not to be on the
cutting edge of the hedge fund industry. But this spring, in at
least one aspect of their businesses, they seem to be playing
catch-up. The reason? Neither has an independent hedge fund
administrator - and both are quietly talking about hiring
Administration, or the back-office work of reconciling
trades and keeping records and books, is by no means sexy. But
as the large fraud perpetuated by Bernie Madoff underscores,
proper administration is necessary, and these days for
investors that means an independent party to do the
In the United States there is no industry convention with
regard to hedge fund administration or any legal requirement
for hedge funds to...
ISSN: 2151-1845 / CDC10004H
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