Back Office & Operations Funds of Hedge Funds Industry Analysis

Administration and operations


The sound practices for the administration and operations of a fund of funds are as important as those for the investment teams. Internally, there should be an appropriate segregation of duties between investment teams and the risk management/operational staff and procedures should be set up to ensure that service providers are acting in the best interests of the fund of funds.

The use of an independent administrator offers both investors and the fund of funds many benefits. Other duties that need to be considered include: trade processing and settlement, cash management and control, pricing of portfolios, net asset