03/02/2012

HSBC Holdings to close New York hedge fund administration group

HSBC Holdings, the New York-based hedge fund administration division of HSBC Securities, is to close its New York office and transfer its operations to Dublin, resulting in the loss of 200 jobs, according to reports Friday.

HSBC Holdings notified some of its clients that they would transfer their assets to Dublin, while it told others to shop around for other administrators,  they added.

HSBC Holdings’ move signifies the ongoing struggles that many hedge fund administrators are facing.

"We are beginning to see excess capacity exit the industry," said Ron Suber, senior partner and head of sales at Merlin Securities, a prime-brokerage services firm.

"If one does not have a long term commitment with an edge- sustainability, growth and profitability are elusive," said Suber.

HFMWeek last summer reported that HSBC had been appointed as Blue Crest’s Management’s administrator.