Stamford Advocate – JPMorgan’s hedge fund services unit in Greenwich is positioning itself for further growth with the advent of new technology that enables funds of hedge funds to outsource middle-office functions, such as administration and custody services.
The unit of the New York-based investment bank recently secured a contract to provide such services for more than $10 billion. FRM is clearly a leader in funds of hedge funds,” said Robert Caporale, global head of JPMorgan Hedge Fund Services.
The contract with FRM represents a first success in the JPMorgan unit’s growth strategy to expand its services to funds of funds, which invest their clients’ money in many hedge funds to diversify and manage risk.
“Hedge fund assets continue to grow and one segment that has grown even quicker is funds of hedge funds,” Caporale said.
Other industry-watchers agree.
“The growth has been very pronounced and we expect it to continue,” said Daniel Celeghin, a director with Darien-based consulting firm Casey, Quirk & Acito, which advises clients on choosing hedge fund investments.
