Gwyn Roberts

24/08/2011 Author: Gwyn Roberts

Editor's View: 24 August 2011

Last week we learned that multi-prime isn’t quite as ‘multi’ as it used to be (HFMWeek 234, 18 August); this week we find that even the deepest and largest admin relationships can now be severed (see news, p3).

The good news is that for once this doesn’t necessarily boil down to counterparty risk or an issue of misjudgement. Instead it’s about diversification, the natural ebb and flow of business and an industry not quite as welded to its service providers as it once was.

Most of all, the decision of BlueCrest to migrate some of its business from GlobeOp to HSBC is a sign of maturity.
Annual reviews of third-party providers happen in almost every sector, so why should hedge fund businesses be any different? And, speaking to service providers, it is clear that more and more COOs at management firms are examining even traditionally lock-tight admin partnerships as they investigate savings that can be passed directly to the fund and its investors.

This will please allocators, who have frequently quibbled with the running costs at funds – and what the fund, rather than the management firm, foots for the bill for – but it also shouldn’t distress service providers too much.

The very best, like GlobeOp, can roll with the punches and should be in a good position to pitch for business from other quarters. It’s early days, but, as with the current BlueCrest deal, it wouldn’t be surprising to see other large relationships being reconsidered.

Post a comment

Post a comment…

Be the first to comment on this article!

07/06/2012

UK: Impact of the AIFMD - the real story

Join us and our panel of experts for HFMWeek's Subscribers' Club June's UK breakfast briefing, 'Impact…

Read More

31/05/2012

US: Family Offices

The next US HFMWeek Subscribers' Club breakfast, will take place on Thursday May 31. Join us and…

Read More

02/02/2011

European Hedge Fund Services Awards 2012

HFMWeek's European Hedge Fund Services Awards are designed to recognise companies that have outperformed...

Read More

Search HFMWeek