News Details

BOSTON--(BUSINESS WIRE)-- State Street Corporation (NYSE: STT), the world's leading provider of financial services to institutional investors, announced today that it has been selected to provide a range of hedge fund administration services for approximately $6 billion in assets advised by Caxton Associates LP.

International Fund Services (IFS), State Street's hedge fund administration company, will provide fund accounting, fund administration, tax and risk services to five master-feeder fund structures managed by New York-based Caxton Associates and affiliates.

"Our decision to select IFS as our independent fund administrator was based on their long and significant experience servicing highly sophisticated and complex hedge funds in the industry," said John G. Forbes, chief operating officer of Caxton Associates LP. "We also took comfort in IFS's premium technology, experienced staff, and meticulous control environment, which gave us added confidence that IFS could handle our complex and dynamic products."

"This new mandate is representative of a fundamental shift underway in the hedge fund industry, as more managers seek to outsource administrative services in a highly competitive environment in which hedge funds are increasingly subject to intense investor scrutiny," said Jack Klinck, executive vice president and global head of State Street's Alternative Investment Solutions team. "We look forward to forging a long-standing relationship with Caxton Associates and to helping them create additional efficiencies in their operations."

The arrangement between Caxton Associates and State Street highlights the importance of appointing third-party administrators to help alleviate the growing administration requirements from institutional hedge fund investors. For example, State Street's 2008 hedge fund research study conducted during the 2008 Global Absolute Return Congress (Global ARC) revealed that institutional investors continue to seek transparency for their hedge fund holdings. Five out of six institutions (84 percent) expect more disclosure of hedge fund positions and nearly half (49 percent) anticipate more frequent reporting from hedge fund managers. Meanwhile, only a few (19 percent) currently receive some level of consistent transparency across hedge fund holdings.

The breadth and scope of IFS's offerings allow State Street to develop individual, highly specialized solutions that can meet virtually any level of asset servicing requirements for clients across a broad range of sizes and levels of complexity. Using leading edge technology, IFS's respected and highly experienced team collaborates with customers around the globe, including many of the world's largest and most sophisticated hedge funds.

State Street Corporation (NYSE: STT) is the world's leading provider of financial services to institutional investors, including investment servicing, investment management and investment research and trading. With $11.3 trillion in assets under custody and $1.4 trillion in assets under management at March 31, 2009, State Street operates in 27 countries and more than 100 geographic markets worldwide. For more information, visit State Street's website at www.statestreet.com. To obtain a copy of the State Street hedge fund research study, please contact publicrelations@statestreet.com.

Caxton Associates L.P. is a New York-based trading and investment firm formed as the successor to Caxton Corporation, which was founded in 1983 by Mr. Bruce Kovner. Caxton Associates' primary business is to manage client and proprietary capital through global macro hedge fund strategies as well as other alternative investment disciplines. Caxton Associates and its affiliates currently manage approximately $6 billion in assets. Caxton employs a staff of approximately 250 people, including traders, research analysts and administrative personnel in its offices in New York, Princeton, NJ and London. Caxton Associates is a Delaware limited partnership and is registered as an Investment Adviser with the U.S. Securities and Exchange Commission. The firm is also registered pursuant to the Commodity Exchange Act, as amended, as a commodity pool operator and commodity trading advisor and is a member of the National Futures Association as a CPO and a CTA.

    Source: State Street Corporation