Stanford University Documents Globeop in First Fund Administrator business Model Case Study

17 July 2008

GlobeOp Financial Services ® is the first hedgefund administrator to be featured in a business model case study developed for classroom use by the Stanford University’s Graduate School of Business.

The case study, ‘GlobeOp: Enabling Hedge Funds, 2000-2003’ is the first of two parts, documenting GlobeOp’s foundation in 2000 and the company’s strategic decisions and activities during its first three years in operation. During this period, GlobeOp grew from a small core team of 20 people to a business employing more than 400 people serving 82 hedge fund clients representing more than $26 billion in assets under management (AUM). Today GlobeOp employs 1,700 people worldwide and serves more than 155 clients representing $102 billion AuM.

Hans Hufschmid, CEO of GlobeOp, said: “We are honored to be the focus of this study, which we hope will provide students with useful insight into the vision, team commitment and plain hard work it takes to establish a business for growth and long-term success. The case study particularly underlines just how vital a robust operational and technology infrastructure is in a constantly evolving and highly competitive market."

Professor Glenn R. Carroll, who led the study, noted that, “GlobeOp exemplifies the strategic value of cutting-edge technology in an entrepreneurial, global organization. This is exactly the kind of new firm that our students want to learn about and will work in. We are gratified that they opened their doors to us."

The case study was co-authored by Professor Carroll, Laurence W. Lane professor of Organizations in the Graduate School of Business and (by courtesy) professor of Sociology in the School of Humanities and Sciences, Stanford University; Victoria Chang, a Graduate School of Business researcher; and David Modest, former professor of finance at the University of California, Berkeley.

The initial case study documents how GlobeOp identified and targeted an opportunity and then defended its market position by effectively managing growth and stabilizing the organization. It includes GlobeOp’s strategic decision to establish a significant presence in India to optimize scalability and time zones, and subsequently provide its global client base with comprehensive 24/5 service. The study also discusses GlobeOp’s responses to market opportunities, client demands and resourcing challenges, which paralleled financial technology innovations and the expansion of its client base from hedge funds to funds of hedge funds.

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