Managed accounts are used by institutional and private investors as an alternative to direct hedge fund investments. The key attraction is increased portfolio transparency and investor ability to retain control over assets and investment terms.

Accelerated investor interest in managed accounts is now driven by:

• the logic of independent valuation
• investor dissatisfaction with gates, lock-ups, side-pockets and similar redemption limitations imposed by hedge funds in 2008
• the lack of independent asset, position and cash verification at the core of Madoff-related events