Millennium Management, the $11bn New York hedge fund run by Izzy Englander, has appointed an independent administrator to provide worried investors with reassurance in the wake of alleged $50bn Bernard Madoff fraud.Millennium appointed London-listed GlobeOp to provide independent valuations and checks on its assets, something common among newer funds but rare for the largest, oldest US hedge funds.
Pressure for independent administrators is growing worldwide, but matters most in the US, where many of the biggest funds carry out their own valuations and administration.
“We are sending a strong signal about our commitment to transparency and the independent validation of Millennium’s portfolio positions, asset-pricing and expense allocation by appointing GlobeOp as an independent administrator, and by increasing our online investor portfolio reporting,” said Terry Feeney, Millennium’s chief operating officer. GlobeOp had previously worked for the fund doing price verification.
Millennium appoints independent administrator (Financial Times, 6 January 2009)
Read: investors in the "largest, oldest U.S. hedge funds" are becoming very fretful that "their" hedge fund might be a cult-of-personality-driven criminal fraud like Madoff's.