Bridgewater Associates hired Northern Trust to replicate some of the middle- and back-office fund administration services now provided by BNY Mellon for the firm's $140 billion managed in hedge fund and long-only investment strategies.
A source with knowledge of Bridgewater's plans who asked not to be identified confirmed the Northern Trust hire. The source said Northern Trust's replication services will act as a quality-control measure on the processes provided by BNY Mellon.
Northern Trust expects the replication process to be up and running in 2014, according to a news release from the bank.
Last year, Bridgewater outsourced these services to BNY Mellon, which set up an office in the alternative investment manager's hometown, Westport, Conn. BNY Mellon has provided various custody, fund accounting and administrative services to Bridgewater since 1991.