The fall in assets in 2008 has dented the profitability of
hedge fund administrators at the same time as regulatory and
investor demands on them are starting to grow dramatically
Hedge fund administrators are caught between a rock and a
hard place as the alternative investment industry undergoes a
period of far-reaching change.
The plunge in industry assets has dealt a substantial blow
to the profitability of an industry where fees are usually
charged as a basis-point percentage of client assets.
And the problems of the past year in the hedge fund world,
meanwhile, are triggering a very significant increase in the
demands and burdens on administrators from regulators and
investors - potentially increasing costs sharply, just as their
profits are shrinking.
The Madoff disaster at the end of last year has caused
investors of all shapes and sizes to become increasingly
vigilant about where their assets are held, how they...