WEST PALM BEACH, FL (www.hedgeco.net) – State Street Corp. announced its plans to increase its commitment to hedge fund services in a bid to increase its own share of the business of hedge fundswhich has seen a larger proportion of assets flowing into its management vehicles over the years. State Street is placing higher priority on its hedge fund administration services according to JayHooley, who manages State Street�s trading, and financing obligations.
Jay Hooley said, �Hedge fund administration services has become a very high priority business for State Street, and the firm is consequently increasing its hedge fund commitments as a result of the surge in the level of assets coming to the hedge fund industry.� While hedge fund returns have declined in 2005, new assets continue to flow to the industry regardless.
Analysts don�t believe such inflow will end any time soon, State Street and other industry participants don�t expect a significant drop in the level of new money coming to the hedge fund industry. Some well established hedge fund managers may continue to achieve absolute returns for their investors.
Magnus Olsen, head of hedge fund investing for London-based London & Capital, which advises institutional investors, said “Over the last ten years, there have been various periods of flat or negative returns, so that’s not unusual.� Today, institutional investors account for about 56 percent of the total of hedge fund investments. State Street represents a total of 100 hedge funds according to Gary Enos, head of State Street’s alternative investment services; he said State Street provides accounting, asset valuation, and other trading services.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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