2009: The year of transparency – and third parties
| Dec 28th, 2009 | Filed under: Hedge Fund Industry Trends, Today's Post | By: AAA Staff |
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As Barron’s points out this week, 2009 was a “year of recovery and transparency for the hedge fund industry.”
If there is any sort of broad, non-investment-related corollary that has emerged in the alternatives world this past year, it is the emergence of the “third party” in everything from middle- and back-office administration to independent portfolio valuation.
Not to be confused with the counter-party, which we discussed in detail here (or with a third party marketer), the “third party” has become the investment world’s new way of (hypothetically) ensuring that processes, numbers, valuation practices and everything in between are calculated and signed off on at arm’s length from the fund manager.
For hedge fund managers, particularly those with institutional allocations, it has quickly become a new reality: Either have your portfolio independently valued and verified, or lose the business. More…
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