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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
“Hedge fund assets continue to grow and one segment that has grown even quicker is funds of hedge funds,” Caporale said.<\/p>\n
Other industry-watchers agree.<\/p>\n
“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.<\/p>\n