Positive asset retention ‘remains intact’, says SS&C report

Cash flowing into hedge funds in March stands at 0.59%, indicating positive net inflows, according to SS&C GlobeOp’s latest index.

The fund administrator’s Capital Movement Index for March 2021 was 0.59%, flows which were closely in line with the 0.60% reported a year ago at the time when the COVID-19 outbreak began impacting markets.

Bill Stone, Chairman and CEO, SS&C Technologies, added: "In the year since, hedge funds have experienced generally strong asset retention, reflecting investor confidence in managers' ability to generate attractive risk-adjusted returns.

“Capital movements for March 2021 suggest, while the comparisons with year-ago numbers may begin to level out, the positive trend in asset retention remains intact."

Cumulatively, the index for March 2021 stands at 129.97 points, an increase of 0.59 points over February 2021. The index, which has declined 0.90 points over the past 12 months, represents the monthly net of hedge fund subscriptions and redemptions administered by SS&C on its GlobeOp platform.

The report was released in tandem with the SS&C GlobeOp Hedge Fund Performance Index, which revealed a gross return for February 2021 measuring 2.4%

Foreside snaps up JG Advisory Services

New York-based JG Advisory Services, a regulatory solutions provider to hedge funds, has been acquired by Foreside Financial Group.

Foreside, which provides governance, risk management, compliance solutions and technology offerings to clients in the global asset and wealth management industry, made its sixth acquisition since 2019 with the purchase of JG Advisory.

Judy Gross, principal and founder of JG Advisory Services, and her colleagues will join Foreside in mid-March 2021. JG Advisory works with hedge funds of all sizes, specialising in emerging managers.

“When assessing acquisitions, we consistently choose firms that are known for outstanding client service and industry expertise,” said David Whitaker, president of Foreside. “JG Advisory Services has helped sophisticated private equity and hedge fund firms develop into industry leaders, and we are proud to have them on board to build our expertise with emerging managers.”

Portland, Maine-headquartered Foreside, which is majority-owned by private equity firm Lovell Minnick Partners, previously acquired Capital Markets Compliance in January 2021; ICS Group in November 2020; Quasar Distributors, U.S. Bancorp’s mutual fund and exchange-traded funds (ETFs) distribution business, in March 2020; Compliance Advisory Services in October 2019; and NCS Regulatory Compliance in January 2019.

Financial terms of the transaction were not disclosed.

People moves: Blackstone, SRZ

Blackstone has hired Scott Bommer as the Chief Investment Officer of the new Blackstone Horizon platform, an initiative being launched by Blackstone Alternative Asset Management (BAAM).

Bommer joins the firm after managing his family office where he focused on late-stage growth investing. He was also founder of SAB Capital Management where he served as CEO and worked for 17 years from 1999 to 2015. He previously worked as a Portfolio Manager at Siegler, Collery & Co., an Associate at McKinsey & Company and an Analyst at Goldman Sachs.

In his new role, Bommer will take responsibility for the investing functions at Blackstone Horizon, a new investment business that targets strong absolute returns by investing in and forming strategic partnerships with high-performing investment managers.

Joe Dowling, Blackstone Global Co-Head of BAAM, said: “Scott is a proven investor who has extensive experience in the public and late-stage private markets. We have known each other for more than 25 years and have collaborated on numerous investment opportunities. I look forward to working alongside him.”

Schulte Roth & Zabel has made four new partner announcements and eight promotions within its New York office.

David Arnstein, David Griffel, Anthony Taylor and Heather Wyckoff will become partners of the law firm, while William Barbera, Neil Begley, Adam Gartner, Andrew Gladstein, Robert Griffin, Jill Guzzetti, Annie Mehlman and Brian Smith have been promoted to special counsel.

“Each of these outstanding lawyers have shown a commitment to providing exceptional client service while remaining at the cutting edge of their respective practices,” commented Marc Elovitz, SRZ co-managing partner and chair of the Investment Management Regulatory & Compliance Group.