Hedge Funds Review talks with Peter Hughes, group managing director of Apex Fund Services, about issues and challenges confronting the hedge funds industry and administration service.

Hughes talks about the main challenges facing fund administrators in a post-financial crisis world as well as some of the issues around valuation of instruments.

Other topics discussed include how the increasing pressure to have independent validation of pricing is impacting fund administrators.

Hughes gives his views on the fund administration industry and how the sector is recovering after the redemptions and loss of assets under administration.

He also talks about the importance of third party fund administration, what countries are presenting possible market opportunities and in general about emerging markets.

The impacts of increased regulation on fund administrators as well as hedge fund clients is touched on by Hughes as is the possible consolidation of the fund administration sector in the short/medium term.

As the demarcations between traditional long strategies, private equity and hedge funds blur, what impact will this have on fund administration, Hughes gives his views on this phenomenon.