GlobeOp, a financial technology specialist firm providing automated, integrated middle-, back-office, administration and risk reporting services to hedge funds and asset management firms is making its mark in academic circles.
The second phase of a GlobeOp Financial Services business model case study has been finalised by the Stanford University’s Graduate School of Business. GlobeOp is the first hedge fund administrator to be featured in a case study developed for classroom use by Stanford.
GlobeOp: Structuring for Hedge Fund Growth, 2003-2008 follows the initial study that documented GlobeOp’s foundation, strategic decisions and activities during the first three years following its foundation in 2000.
‘The case provides an exceptional opportunity to see how an entrepreneurial start-up in financial services was transformed into a mature global organisation without losing it technological advantage,’ said Professor Glenn R. Carroll, who led the study.
The new chapter documents GlobeOp’s five-year growth from a young business with 400 employees and 82 hedge fund clients, representing more than $26 billion in assets under administration, to a publicly-listed company with a global service network on three continents.
Today GlobeOp employs 1,600 people in 10 facilities worldwide and serves more than 180 clients representing $91 billion in assets under administration.
One of the jurisdictions GlobeOp has chosen to operate in is Cayman, for a number of reasons.
President and chief operating officer Vernon Barback says he thinks Cayman has several advantages as a jurisdiction.
‘Cayman has implemented a set of rules for hedge funds that are well thought out and clear, and these rules are supported by a top quality judicial and regulatory system,’ he said.
‘Highly qualified Cayman experts are plentiful in the hedge fund industry. Cayman is a well-run jurisdiction in which to establish a hedge fund and has built a framework within which funds find it easy to operate,’ he continued.
‘Cayman has a leading position in terms of the quality of its legal, accounting and administration infrastructure.’
The regulators, he says, are thoughtful and have been able to create a well-regulated environment.
‘The outlook for Cayman is good for the industry, managers, service providers and investors.’
Hans Hufschmid, CEO of GlobeOp said the five-year period discussed in the new chapter of the Stanford case study details strategic milestones for GlobeOp that were also important learning experiences for the company as entrepreneurs and as a service provider.
‘As it concludes at the beginning of a year of unprecedented turmoil for our clients and financial markets in general, we hope this latest installment will provide students with useful insight into the vision, nimbleness and innovation needed as market opportunities and challenges develop,’ he said.
‘With new market fundamentals now emerging, we believe the focus on client service and transparency detailed in the case study will position us well for the future.”
The case study can be accessed on the GlobeOp website www.globeop.com/globeop/ab/gotimeline/stanhistory or the Stanford Business School website gsbapps.stanford.edu/cases/detail1.asp?Document_ID=3056.
It will also be distributed by Harvard Business School Publishing.