State Street Corporation has been selected to provide a range of hedge fund administration services for approximately USD6bn in assets advised by Caxton Associates.
State Street Corporation has been selected to provide a range of hedge fund administration services for approximately USD6bn in assets advised by Caxton Associates.
International Fund Services, State Street’s hedge fund administration company, will provide fund accounting, fund administration, tax and risk services to five master-feeder fund structures managed by New York-based Caxton Associates and affiliates.
‘Our decision to select IFS as our independent fund administrator was based on their long and significant experience servicing highly sophisticated and complex hedge funds in the industry,’ says John G. Forbes, chief operating officer of Caxton Associates. ‘We also took comfort in IFS’s premium technology, experienced staff, and meticulous control environment, which gave us added confidence that IFS could handle our complex and dynamic products.’
‘This new mandate is representative of a fundamental shift underway in the hedge fund industry, as more managers seek to outsource administrative services in a highly competitive environment in which hedge funds are increasingly subject to intense investor scrutiny,’ adds Jack Klinck (pictured), executive vice president and global head of State Street’s alternative investment solutions team. ‘We look forward to forging a long-standing relationship with Caxton Associates and to helping them create additional efficiencies in their operations.’
State Street’s 2008 hedge fund research study revealed that institutional investors continue to seek transparency for their hedge fund holdings. Five out of six institutions (84 per cent) expect more disclosure of hedge fund positions and nearly half (49 per cent) anticipate more frequent reporting from hedge fund managers. Meanwhile, only a few (19 pe rcent) currently receive some level of consistent transparency across hedge fund holdings.
