Hedge Fund Focus

Ernst & Young

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Description From Website:

Today’s start-up funds are launched with big assets, intricate technology and sophisticated trading strategies, which in turn are attracting sophisticated investors.

That’s not the only change in the industry. Hedge funds are on a growth trajectory — the revitalization of European equity markets, the availability of new wealth in China and India and the strong performance of Asian funds all mean that investor assets are expected to top $2 trillion by the end of 2006, with another trillion dollars a year on top of that to 2008.

Furthermore, to fund further growth, hedge funds are approaching institutional investors such as pension and endowment funds, and in some cases targeting the retail investor.

And of course, all this potential is attracting new players to the market, including investment banks and Private Equity houses, looking to buy out established hedge funds, or set up funds of their own.

In short, hedge funds are moving from a cottage industry into the mainstream of global asset management. But if this transition is to be a success, hedge funds will be required to adopt a more formalized set of behaviors.

Ernst & Young can help with this transition. The services provided range from advising on ways to achieve growth to how to accurately price a hedge fund portfolio. It also includes monitoring performance, helping to achieve regulatory compliance and transparency of process, helping identify the best technological solution and evaluating operational risk. In other words, the full spectrum of attestation, assurance and audit services.

There will be pitfalls ahead for the burgeoning hedge fund industry — but there are also significant opportunities.

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Articles on Ernst & Young by Hedge Fund Focus:

• Service Provider | Managed Fund Association