Tony Griffiths

09/03/2011 Author: Tony Griffiths

Admin size matters when it comes to regional focus

For those hedge fund administrators big enough, the battle for business is taking place on three key geographical fronts: Europe, Asia and the US.     

Of the three, Asia is the budding market, of course. The traditional focal points of Europe and the US are by no means saturated, but when the likes of Citco – the world’s biggest hedge fund administrator by AuA – pushes its Asia personnel past 300, as it did at the end of 2010, you know an industry triumvirate has been officially established. 
   
Not everyone can afford to spread resources evenly for a three-pronged attack though.

“There are a lot of the smaller administrators who are focusing on one of those regions, depending on where they are,” says Dermot Butler, chairman of Custom House, “and they aren’t big enough to do the rest – even some of the larger bank-linked administrators ignore Asia.”

With more than $34bn in AuA (as of October 2010), Custom House is by no means one of the industry’s smaller administrators. Nonetheless, as a top-20 rather than top-5 player, its focus is more divided than the Citcos of this world.

“Do I think you need to be in Asia? Yes, I do. Is everyone vying for that space? No, because even in Custom House there’s a divergence of opinion as to which region is most important. I believe that the future is Asia, while others say that America is where we should be concentrating our resources.”

Sun-chasing – that is, ensuring you have an office open at all times across the globe – is as big a factor as business accumulation, but, either way, opinion appears divided. Most admins will want to pick their battles carefully

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