Bridgewater Hiring Northern Trust to Backup Work of BNY Mellon

January 14, 2013 James Heinsman Hedge Fund News

Bridgewater Associates has got people wondering what they are thinking. The hedge fund company has announced that it will add an additional asset service provider to their payroll: Northern Trust will now begin to back up and duplicate the tasks and responsibilities of Bridgewater’s present provider, BNY Mellon.

This highly unusual arrangement will be launched in 2014, and has been lauded as unprecedented in the history of the asset management industry. The addition of Northern Trust was based on an “extensive two-year hedge fund due diligence process to identify a firm with the financial stability, expertise, global scale, and technological infrastructure to support Bridgewater”, announced representatives from Northern Trust in a statement.

“In a role that will create approximately 100 jobs in Chicago and Stamford, Northern Trust will provide broad middle-office and back-office services including replicating various administrative processing, trade processing, valuation, real-time reporting, cash management, accounting and collateral management services,” the Chicago-based company said.

Lyn Marcrum, a senior analyst at Aite Group is surprised by the move, considering it is not a regulatory requirement to have to services performing the same tasks.

“It sounds super-expensive. There’s got to be something else in it for them, and I’m racking my brains trying to think what it is,” said Marcrum.

BNY Mellon, Bridgewater, Chicago, Lyn Marcrum, Northern Trust,

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