Administrators feel the heat as assets dive and demands grow


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