Gemini Hedge Fund Services, LLC (Gemini Hedge) President, David Young was quoted in the Fund Fire article, “Are Inst’l Ops a Make-or-Break Burden? Yes, Deimos Says”.

“High institutional operational overhead is an increasing burden amid a challenging fundraising and asset retention climate for hedge funds, but market watchers say that a recent hedge fund closure blamed in part on such costs still may be an extreme case.

Investors looking for institutional level experiences amid ongoing pressure on fees have set up high – and maybe unrealistic – expectations for lean hedge fund managers that are nevertheless able to handle strong compliance, technology, staff and services. The costs of running an institutional-quality fund can run over two times the amount of other funds, estimates David Young, president at Gemini Hedge Fund Services, who increasingly sees all investors looking for such a high-end experience.

“To meet the requirements of an institutional investor you have to have complete redundancy,” he says.

“When you look at the amount they [Deimos] were managing, and the quality of the staff, it was a high quality team, there’s an expense related to that,” Young says. “Economically they probably needed a continued inflow of capital and we are in an environment where things are moving slow.”

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