Press Releases - 2000
GlobeOp Launches Unit to Quantify, Monitor Portfolio Risk for Hedge Fund Investors, Managers, Creditors
10 Oct 2000
Business Editors
HARRISON, N.Y. and LONDON--(BUSINESS WIRE)--Oct. 10, 2000--GlobeOp Financial Services today announced the launch of GlobeOp Risk, a leading independent service dedicated to providing risk assessment and measurement for investors, managers and broker/dealers for hedge funds or other funds.
"GlobeOp Risk further strengthens GlobeOp Financial's focus on providing the hedge fund and asset management community with services critical to successful fund and asset management," said Hans Hufschmid, chairman and chief executive officer. "With hedge funds' assets under management estimated at more than $450 billion and the number of funds increasing, this enterprise responds directly to the growing demand we are seeing for deeper, more sophisticated risk information from all parties -- the hedge fund managers, their investors and creditors.
"Hufschmid added: "Because GlobeOp maintains the securities master and pricing and position data for our clients, GlobeOp Risk is strongly positioned to provide independent information about and reporting of portfolio risk. This is an important service for which investors and creditors have traditionally relied on their managers, despite the inherent conflict that presents.
"Additionally, as more and more institutional investors participate, we are seeing greater emphasis on transparency, especially as it relates to leverage," Hufschmid said. "A 'best practices' approach on the part of fund and asset managers calls for them to keep investors, credit providers and counterparties advised as to risk and the effect of market disruption on fund positions and strategies.
"Didier Martineau and Jerome Barraquand will be managing the new subsidiary. The two Managing Directors will be based in London.
Prior to joining GlobeOp, Barraquand was a Senior Vice President and head of fixed income arbitrage trading at Sanwa International. He previously spent five years with Salomon Brothers in London, as head of fixed income derivatives research and as a trader in the Global Arbitrage Group. Prior to joining Salomon Brothers, he spent 10 years in academic research, first as a research associate in computer science at Stanford University and then as head of the Computational Finance Group of the Paris Research Laboratory of Digital Equipment Corporation. Barraquand graduated from Ecole Polytechnique in France, and holds a Ph.D. degree in computer science from the University of Nice-Sophia-Antipolis, France.
Martineau previously was co-head of the Portfolio Arbitrage Group, a proprietary trading operation of Nomura International plc. Prior to joining Nomura, Martineau spent five years with Long-Term Capital Management (LTCM) in London as a senior strategist working on many aspects of the hedge fund's risk management system. Before joining LTCM, Martineau was a researcher for Digital Equipment Corporation, working for the Computational Finance Group in Paris. He is a graduate of Ecole Polytechnique in Paris and holds two Masters degrees, one in parallel computing and one in engineering.
For the hedge-fund investor, GlobeOp Risk will provide tailored risk analytics. To counterparties, the service is designed to monitor and report on risk from the credit point of view. Hedge fund and asset managers can use the services of GlobeOp Risk to establish a comprehensive risk system.GlobeOp Risk will serve the needs of those associated with current GlobeOp Financial Services clients, as well as independent entities seeking the independence of a qualified, outside service.
About GlobeOp Financial Services
GlobeOp Financial Services is an independent financial service provider specializing in turnkey support for the middle- and back-offices of, as well as administration for, hedge funds and asset managers. From offices in New York and London, GlobeOp provides services essential to the successful launch and operation of private investment entities. Market coverage includes equity, fixed income, OTC and exchange traded derivative products. Company expertise is based on staff drawn from the senior levels of international banking. Web site: www.globeop.com.