Hedge funds consider outsourcing options for middle and back office functions

In or outsourcing? Hedge funds are considering their options as some functions like fund valuations are brought back in-house while other middle and back office operations remain outsourced.

The practice of hedge funds outsourcing functions now stands at a crossroads, as managers begin selectively to draw back in-house some activities they earlier farmed out.

Functions such as those performed in the middle office are among those being retrieved. Service providers increasingly agree that insourcing, even in some cases of fund valuations, can make sense.

Insourcing is occurring slowly, and it must be said it runs against the prevailing trend of outsourcing, which is being driven by