As we look forward to 2014, we can expect that the hedge fund and investment management industry will continue to evolve and experience change as in years past. As more and more new funds launch, the competition for investors will increase and firms will be hard-pressed to live up to the successes of the top performing funds in the industry.
Earlier this week, we gathered several panels of experts in Boston to share their insights into the hedge fund landscape for startups in 2014 and the tips and advice for firms looking to compete in the changing marketplace. Following is a brief recap of the event.
Building a Hedge Fund is Like Building Any Successful Business
When starting a new firm, it’s critical to think about all aspects or forming a new business. Yes, your investment strategy is important, but if the foundation of your business is not critically thought out, it will wreak havoc for your firm. Following are a few areas you shouldn’t overlook as you go through the launch process.
Categorized under: Business Continuity Planning Cloud Computing Hedge Fund Due Diligence Hedge Fund Marketing Hedge Fund Operations Hedge Fund Regulation Infrastructure Launching A Hedge Fund Outsourcing Privacy Compliance Security Trends We're Seeing
Like David bravely dueling with the larger Goliath, small and mid-sized investment firms are often faced with insurmountable odds when competing against larger (and better endowed) funds. With more experience and more assets, larger firms have the advantage when it comes to soliciting investor allocations. But do these inherent shortcomings equal certain failure? If David can emerge victorious, can’t smaller hedge funds?
Earlier this week, we gathered a panel of experts in San Francisco to discuss this topic at length. Following is a brief synopsis of the topics they covered.
While it’s not the sexiest aspect of a hedge fund’s operations, a firm’s technology infrastructure is critical to its success. But a major consideration lies in choosing what type of infrastructure to use, and accordingly, where to host it.
Earlier today, we picked the brain of our Vice President of Client Technology, Steve Schoener, and asked him to share his expertise on the key drivers for firms migrating to the cloud. He also shared two examples of clients who’ve successfully transitioned to the cloud for various reasons. Below is a short recap of Steve’s presentation.
Would you rather watch the full replay? Scroll down or click here.
As you know, we encourage our clients to regularly test their disaster recovery systems (at least twice a year!). But believe it or not, there is actually an even better preparation for a DR situation - a planned activation.
In recent years, Eze Castle has seen a large increase in requests for planned activations. Why? A few notable reasons include:
- Compliance purposes
- Investor due diligence requests
- A desire for more comprehensive scenario-testing
“But isn’t a planned activation the same thing as a DR test?”
We hosted a webinar earlier this week, App Hosting 101: Managing Your Essential Applications in the Cloud, in which Steve Schoener, Eze Castle Integration’s Vice President of Client Technology, and Martin Sreba, Senior Director at Advent Software, discussed topics such as industry trends in application hosting, key drivers of application solutions, common myths about the cloud, and the right time to put an application into effect. Continue reading for an overview of the webinar.
Industry Update: What’s Going On?
Increasing demands from hedge funds’ current and target investors are driving a variety of trends. Due diligence requirements are more advanced, as investors expect to see candid looks into a fund’s systems, disaster recovery capabilities and more. The increasing complexity of investments is also driving the need for more complex systems to handle these instruments.
Firms are starting smaller in today’s environment, with many starting with under $100mm in assets under management. Startup funds are looking for technology solutions to complement their size and give them the tools to efficiently run their businesses.
We were recently asked by a COOConnect member about the best sources for information about the strengths/weaknesses of the various hedge fund applications including front, middle and back office. Since we know many folks have this same question, today we are going to expand on the answer given by our expert, Mark Coriaty.
Now the way a hedge fund uses an application will vary based on its investment strategy, and therefore the perceived strengths and weaknesses may vary as well. However, there are multiple ways to establish a baseline of strengths and weaknesses.
Service Provider Reports: Balancing Bias with Value
First up are free reports from hedge fund service providers such as Eze Castle Integration. Each year we publish a benchmark study that outlines top applications used in select front, middle and back office categories by hedge funds. This report will provide a baseline of the top three application vendors used in each category, but doesn’t dive into specific feature sets. The report can be downloaded HERE.
Vendor reports can be helpful in getting an initial understanding of the most frequently used applications and top features used by firms. You should always consider the source, as some vendor reports or whitepapers will be biased.
It is becoming cliché to say, but the investor due diligence process has truly evolved from a ‘check the box’ activity to a detailed and analytical process. Today, hedge fund investors want to see a tested investment strategy coupled with institutional-grade business processes.
Here at Eze Castle Integration, each year we help more and more hedge fund clients complete the Technology portion of investor due diligence questionnaires (DDQ). So we thought it would be helpful to share some of the more common technology related questions we are seeing. Not surprisingly you’ll see security and disaster recovery questions on the list.
As you consider your responses to these questions, keep in mind that in some cases investors are more concerned with your decision process as opposed to seeing the “right” answer. The reality is that often the “right” answer varies from firm to firm and depends on a number of factors, including investment strategy.
Last week, we hosted a webinar with eSentire on best practices for managing security risks. eSentire is the leading managed security service vendor protecting 25% of the global hedge fund market by AuM. During the webinar, the company's director of marketing, Mark Sangster, and our own vice president of client technology, Steve Schoener, explored topics including the scope of cyber threats, the anatomy of a cyber attack, continuous security monitoring and security policies and procedures for hedge funds to consider. Read on for a full recap of the information covered during the event.
Today, we're excited be hosting the 2013 London Hedge Fund Cloud Summit at the Prince Philip House in London. The event features a variety of industry experts participating in thought-provoking panel disccussions focused on the cloud adoption trends shaping the investment industry. Conversations will touch on everything from the differences between public and private clouds to cloud security and application hosting.
In honor of this event and to provide a visual to help encapsulate the many benefits that come from leveraging a private cloud, we have published a new infographic entitled “You Might be a Private Cloud User If…” Check it out to see the top 10 signs that you are likely a private cloud user. For more information and details on the 2013 London Hedge Fund Cloud Summit please visit the event page. Also, be sure to look out for a recap of the event here on the Hedge IT blog next week!
Yesterday our VP of client technology, Steve Schoener, presented on a California Hedge Fund Association webinar about building an institutional infrastructure at today’s hedge funds. A lofty topic (so consider this a basic primer), Steve focused on four key discussion areas, which we’ll recap here. They were:
Investor Expectations of IT
On-premise & Cloud solutions: Which is right?
Security Risks & Best Practices
Disaster Recovery How-Tos
You can watch the 30-minute webinar now or keep reading below.
- Expert Tips for Launching a Hedge Fund in a New Environment
- Answering the FCA's Dear CEO Letter on Outsourcing with Some Practical Steps
- Reflecting on What We're Thankful For This Thanksgiving
- Finding Your One-Stop Shop: The Benefits of Choosing an All-Inclusive IT Provider
- Three Ways Your Cloud Provider Can De-Stress Your Life
- business continuity planning
- cloud computing
- data loss prevention
- disaster recovery
- eze castle milestones
- hedge fund due diligence
- hedge fund marketing
- hedge fund operations
- hedge fund regulation
- help desk
- high frequency trading
- launching a hedge fund
- privacy compliance
- project management
- real estate
- startup & relocation
- trends we're seeing
- videos and infographics