A little more than a year since Westport-based Bridgewater Associates turned over some of its back-office functions to BNY Mellon, the world’s largest hedge fund is hiring Northern Trust’ to replicate some of that work.
Northern Trust announced the Bridgewater deal on Tuesday. According to Chicago-based NT, it will replicate certain middle and back-office services for Bridgewater’s as the fund continues to transform its back offices.
In October of 2011, Bridgewater made a deal with BNY to essentially move 91 back office workers off Bridgewater’s payroll and onto BNY’s. It’s a move that other financial firms have made to allow them to concentrate on their core business.
NT said as a result of its deal, it will create approximately 100 jobs in Chicago and Stamford providing services that include replicating various administrative processing, trade processing, valuation, real-time reporting, cash management, accounting and collateral management services.
Northern Trust said the independent, replicated services will provide Bridgewater an enhances level of oversight and controls while validating results. Services are expected to begin in 2014. Northern Trust said the hedge fund industry is going through a transformation and this type of arrangement could be the beginning of an expansion of this kind of service.
“We are delighted to be working with Northern Trust and to draw on their leading-edge technology and expertise for the benefit of our clients,” said Eileen Murray, Co-President of Bridgewater Associates. “At a time of unprecedented change and uncertainty for investors, Northern Trust’s independent review mandate as part of our ongoing transformation program at Bridgewater is designed to provide an added level of protection and security for our clients.”
Bridgewater also got good news Tuesday after the City of Stamford granted Building and Land Trust the right to use city property as part of its development of a new headquarters for Bridgewater.
See the Bridgewater story in the Stamord Advocate.