State Street to administer Caxton hedge funds

State Street Corp., which specializes in serving institutional investors and wealthy customers, said Thursday it has been selected to provide hedge fund administration services for about $6 billion in assets advised by Caxton Associates.

State Street's hedge fund administration company International Fund Services will provide accounting, fund administration, tax and risk services to five master-feeder fund structures managed by New York-based Caxton Associates and affiliates.

"Our decision to select IFS as our independent fund administrator was based on their long and significant experience servicing highly sophisticated and complex hedge funds in the industry," said John G. Forbes, chief operating officer of Caxton Associates.

Hedge fund managers are increasingly seeking to outsource administration of funds as investors continue to seek transparency for their hedge fund holdings, said Jack Klinck, executive vice president and global head of State Street's Alternative Investment Solutions team. Investors heightened expectations includes increased disclosure of hedge fund positions and more frequent reporting.

State Street has $11.3 trillion in assets under custody and $1.4 trillion in assets under management at March 31. The Boston-based company operates in 27 countries.

Shares rose 46 cents to $47 in afternoon trading.

Caxton Associates is a New York-based trading and investment company. Its primary business is managing client and proprietary capital through global macro hedge fund strategies as well as other alternative investment disciplines. It manages about $6 billion in assets and employs 250 people in New York, Princeton, N.J., and London.