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JPMorgan Acquires Hedge Fund Ops, Creates New Business Unit, and more

JPMorgan Worldwide Securities Services Acquires Paloma Operations, Bank of America Chooses Pollack to Head Credit and Banking, VanthedgePoint to Offer Advent's Geneva to Clients, BISYS Signs Four Funds

JPMorgan WSS Acquires Paloma's Operations

JPMorgan Worldwide Securities Services (WSS) has agreed to acquire the middle- and back-office operations of Paloma Partners Management Company, a Greenwich, Conn.-based investment fund manager.

The acquisition will result in a new JPMorgan business unit focused on the hedge fund industry. JPMorgan Hedge Fund Services will combine the daily operational capability from Paloma with JPMorgan's hedge fund administration unit, JPMorgan Tranaut. The new daily operational service is capable of interfacing with over 15 prime brokers and providing daily valuation for trading groups in the Americas, Europe and Asia, according to the release.

The Paloma acquisition also signifies the market launch of JPMorgan's Alternative Investment Services business unit, a suite of products including services for hedge funds, private equity funds, global derivatives and leveraged loans.

According to JPMorgan WSS, by acquiring Paloma it now has an immediate solution to offer hedge fund clients looking to outsource operations.

"This acquisition allows us to immediately offer our hedge fund clients a high quality option—built on top of a hedge fund-specific platform—for outsourcing their daily operations," said Liz Nolan, global head of alternative investment services for JPMorgan WSS, in a release. "We aim to lead the industry in servicing clients with complex alternative investment strategies, and the next step in the growth of our integrated Alternative Investment Services unit is [the] acquisition of Paloma's middle- and back-office operations."

Pollack to Head Credit and Banking at Bank of America

Bank of America's Global Wealth and Investment Management division has appointed Stephen Pollack as credit and banking executive. He will be responsible for developing and managing the comprehensive advice and customized solutions the company offers to wealth management clients in the areas of banking, liquidity management and credit.

Pollack will be working closely with Bank of America Premier Banking and Investments, and The Private Bank of America and its Family Wealth Advisors extension, in delivering credit and banking products and services to affluent, wealthy and ultrawealthy clients. He will be based in Boston, reporting to John Bahnken, president of the Global Wealth and Investment Management Products Group.

"With his broad product knowledge, vast client expertise and strong familiarity with the full resources of the Bank of America franchise, Steve Pollack and his talented team will continue to build momentum in this important product area," said Bahnken in a release.

Pollack most recently served as head of liquidity products with Bank of America's Global Treasury Product Management. Prior to that position, he held roles at FleetBoston Financial and Citigroup.

VanthedgePoint Brings Geneva to Clients

VanthedgePoint Technologies, a subsidiary of VanthedgePoint Group and a provider of services for small hedge funds, has licensed the Geneva global investment accounting and portfolio management software from Advent Software. VanthedgePoint has linked with Geneva to provide tools and services to help small hedge fund clients grow and succeed.

Geneva's investment accounting and portfolio management capabilities will be delivered to VanthedgePoint hedge fund clients that are currently using simple tools that are not entirely suited to the complex accounting needs of hedge funds.

All portfolio data and net asset value calculations performed by VanthedgePoint for its clients will be accounted for using the Geneva platform. In doing so, VanthedgePoint expects to lower operational risk for its hedge fund clients, making them more attractive to potential investors, according to the release.

"Offering Geneva ... to our hedge fund clients helps them improve their operations while increasing their marketability to potential investors," said Geoffrey Tudisco, CEO of VanthedgePoint Group, in a release. "Geneva greatly enhances our integrated platform with its robust portfolio accounting and reporting capabilities that our clients can use to more effectively manage their performance."

BISYS Nabs Four Fund Clients

BISYS, a provider of outsourcing solutions for the financial services sector, has been selected by four fund advisory firms to provide a full range of mutual fund support through their domestic and offshore fund services operations: Giant 5 Funds, PARADIGM Global Advisors, Prusik Investment Management and Wayne Hummer Asset Management Company.

Giant 5 Funds, a Colorado-based investment company, chose BISYS to partner in the start-up of their world allocation fund of funds, Giant 5 Total Investment System and Giant 4 Total Investment System. These unique portfolios seek an equal balance among real estate, bonds, capital, energy and raw materials. BISYS will provide fund accounting, transfer agency and administrative services, according to the release.

PARADIGM Global Advisors is also employing BISYS' fund support for its newly launched SEC-registered fund of hedge funds portfolio, PARADIGM Multi Strategy Fund I. PARADIGM will rely on BISYS for its legal and compliance infrastructure and fund administration services.

To support the launch of Prusik Asia Fund, Prusik Investment Management chose BISYS (Ireland) as fund accountant and transfer agent.

Wayne Hummer Asset Management Company, headquartered in Chicago, is utilizing BISYS' turnkey administrative offering in support of the PathMaster Domestic Equity Fund. Under the terms of the contract, BISYS will deliver a comprehensive suite of services, including fund accounting, transfer agency, distribution and CCO support.

"I believe that our sophisticated global operating platforms and reputation as a leader in regulatory and compliance services is propelling BISYS to attract and retain such valuable relationships," said Fred Naddaff, president of BISYS Fund Services, in a release. "Over the past 12 months, 17 investment firms have signed on with BISYS. This is a testament to the momentum we have gained in the marketplace."

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