The Shift to Managed Accounts

The Shift to Managed Accounts

October 2014


As investors are increasing their allocation to hedge funds, they are confronting a number of issues, including allocating assets to a manager. At BNY Mellon, we now have an offering to really address these issues.

Institutional investors globally are increasingly using dedicated managed accounts – customized single investor funds – as a mechanism through which to invest in hedge funds. Dedicated managed accounts provide numerous benefits including greater control, transparency and governance of hedge fund investments; the ability to customize investment mandates and structures; and the potential for fee compression.

The Shift to Managed Accounts

Hedge fund investing has become a very popular topic among institutional investors, and a lot of that is driven by the pressure they face to try to deliver consistent stable returns, and the best way to do that is through a well-diversified portfolio.

Andrew Lapkin, Chief Executive Officer, HedgeMark


An investment in hedge fund strategies is speculative, should be discretionary capital set aside for speculative purposes, involves a high degree of risk and is not suitable for all investors. Investors could lose all or a substantial portion of their investment and must have the financial ability, sophistication, experience and willingness to bear the risks of an investment long term. Hedge fund strategies may be significantly leveraged and performance may be volatile. Accounts pursuing hedge fund strategies commonly enter into swaps, futures, forwards, options and other derivative transactions for various hedging and/or speculative purposes that can result in volatile fund performance.

No representation is made that any Dedicated Managed Account’s investment process, objectives, goals or risk management techniques will or are likely to be achieved or be successful or that any Dedicated Managed Account or any underlying investment will make any profit or will not sustain losses. The risks of investing in hedge fund strategies will not be negated or even mitigated by HedgeMark’s platform, analytic tools, compliance policies or monitoring and no assurance is given that any Dedicated Managed Account will not be exposed to risks of significant trading losses.

BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally. HedgeMark Advisors, LLC is an SEC-registered investment adviser.

The material contained in this brochure, which may be considered advertising, is for general information and reference purposes only and is not intended to provide legal, tax, accounting, investment, financial or other professional advice on any matter, and is not to be used as such. This brochure, and the statements contained herein, are not an offer or solicitation to buy or sell any products (including financial products) or services or to participate in any particular strategy mentioned and should not be construed as such.

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