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Outsourcing Admin Work May Be Good for Hedge Funds
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Source: NYTimes
February 24, 2009
For administrators of hedge funds, the old rule that if you want a job done properly, you do it yourself, seems to no longer apply, Breakingviews says. The publication says that, while the practice of doing administrative work in-house was already on the wane in the industry, Bernard L. Madoff’s apparent fraud appears to be accelerating the march toward outsourcing. The publication’s Exhibit A is Millennium Management, the old-school hedge fund firm run by Izzy Englander. All its funds are now going to be administered by GlobeOp Financial Services. That means tasks like reconciling cash positions will now be handled outside.
GoodAt_It_08
8 months ago
32 comments
The fallout from that debacle is just beginning. In this particular case, accounting especially, more steps, more hands, more eyes make it more difficult to such an event to happen again.