Sun May 1, 2005

The strategic role of the administrator

Jimmy Donnelly, director of Fortis Prime Solutions, outlines what qualities to look for in a service provider to ensure a successful business and robust infrastructure

A key consideration in running a successful hedge fund is to concentrate on not only the performance and trading strategy, but also to run the fund as a 'business', with a coherent and robust infrastructure. The weight of evidence indicates that the majority of hedge fund failures are at least partly due to operational problems. So the choice of service providers for a start-up hedge fund is a fundamental aspect of a successful business model and, therefore, start-up managers should take significant care with this decision.

In building a hedge fund business, the appointment of an administrator is a decision that is well worth researching in order to make the right choice. An administrator should be seen as a long-term strategic partner whose service levels...

ISSN: 2151-1845 / CDC10004H

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