{"id":30166,"date":"2012-07-18T06:36:33","date_gmt":"2012-07-18T10:36:33","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=30166"},"modified":"2012-07-18T06:50:01","modified_gmt":"2012-07-18T10:50:01","slug":"administrators-and-auditors-identified-as-most-important-hedge-fund-service-providers","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/07\/2012\/administrators-and-auditors-identified-as-most-important-hedge-fund-service-providers.html","title":{"rendered":"Administrators and Auditors Identified as Most Important Hedge Fund Service Providers"},"content":{"rendered":"

\"\"<\/a>New York (HedgeCo.Net) – Hedge fund\u00a0due diligence \u00a0provider, Corgentum Consulting, reported that according to a new survey, only 17% of investors feel that prime brokers are the most important hedge fund service provider. Administrators (33%) and auditors (31%) were identified as the most important providers to this market.<\/p>\n

\u201cAfter the Lehman Brothers disaster, many investors placed significant importance on the role of prime brokerages,\u201d said Jason Scharfman, Managing Partner of Corgentum Consulting. \u201cThe survey data indicates a potentially dangerous shift in the opposite direction signifying that investors have reverted to their old ways and are devaluing the role of prime brokers.\u201d<\/p>\n

When asked who investors felt service providers owe their primary allegiance to, the vast majority (74%) felt administrators are committed to investors.<\/p>\n

“This highlights a surprising disconnect between the operational realities of hedge fund investing versus investor’s beliefs because administrators are hired and compensated by hedge funds and not investors,\u201d Scharfman said.<\/p>\n

Additional findings include:<\/p>\n