2011 Hedge Fund Operations & Technology Benchmark Study
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Transcript of 2011 Hedge Fund Operations & Technology Benchmark Study
Hedge Fund Operations & Technology2011 Benchmark Study
AgendaSurvey Methodology
Respondent Profile– AUM– Offices/Employees– Investment Strategy– Prime Brokers
Data Findings– Front Office – Middle & Back Office
What does this all mean?
Survey Methodology223 Total Respondents
Alternative Investment Firms– Hedge Funds– Private Equity– Fund of Funds– Venture Capital
Surveys completed in 2nd half of 2010
Respondent Profile
Respondent Profile
Of firms who indicated they used a multi-strategy approach, 56% said they used Equity (L/S) as one of their strategies.
The second most common strategy used was Fixed Income (22%), followed by Credit and Private Equity (17%), Distressed Securities and Quant (12%), and Arbitrage and Emerging Markets (7%).
Top Four Secondary Prime Brokers:
1. Goldman Sachs2. Morgan Stanley3. JP Morgan4. Credit Suisse
Data Findings
Front Office
OMS
Market Data Vendors
Market Analytics
Research & Document Management
Front Office: Order Management System
Others:• BTIG OMS• Calypso• Charles River• DMAXX• Fidelity• First Derivatives• Fiserve• Flextrader• InstaQuote• Linedata• McGregor• Merlin OMS• Neovest• Night Direct• Portware• RediPlus• Proprietary
System
ConvergEx’s Eze OMS, Bloomberg OMS and Advent’s Moxy most commonly used
Front Office: Market Data Vendors
Others:• Factset• NYSE• Fund Data• Wombat
Respondents were allowed to select multiple vendors.– 30% of firms with Bloomberg also had Thomson Reuters
Front Office: Market Analytics
43% of respondents used multiple analytics tools– Top combinations were Bloomberg & Capital IQ, Bloomberg & Thomson
Reuters
Front Office: Market Analytics
Others:• The Street• Markets.com• BarraOne• JP Morgan• Edgar Online• Hub.com • Partners
Research• Debtwire• Morningstar
Bloomberg, Capital IQ, Thomson Reuters and Factset are most commonly used
Front Office: Research & Doc Management
Code Red and Tamale RMS products emerging as ‘leaders’ and increasingly replacing in-house solutions
Middle & Back Office
Portfolio Accounting
Risk Management
Investor Relationship Management
Email Archiving
Instant Messaging
Mobile Devices
Middle & Back Office: Portfolio Accounting
Others:• Calypso• E-file Cabinet• Fortis• FundManager• Gravity
Financial• Ledgex• Northern Trust• Proprietary/In-
House• Tradar
Middle & Back Office: Risk Management
Others:• Barra One• Bloomberg• Factset • Fund Manager• GlobeOp• MATLAB• Merlin• Murex• SunGard
Note: Some respondents provided multiple answers.
Middle & Back Office: Investor Relationship Management
Others:• Code Red• Fund Manager• Fundrunner• Ledgex• Microsoft• PerTrac• Sage SalesLogix• Satuit• The Next Round
(TNR)
Middle & Back Office: Email Archiving
Dodd-Frank requires archiving, driving increased adoption– Global Relay most commonly used vendor
Others:• Advisor Mail• FrontBridge• i365• Intradyn• Message One• Seccas• Smarsh
Middle & Back Office: Instant Messaging
Of the firms who indicated they used Instant Messaging, 25% listed more than 1 vendor
Others:• Google Chat• IMTrader• Pigeon• Pod• Reuters Messaging• Trillian• Windows Live
Messenger
Middle & Back Office: Mobile Technology
Of the firms that listed the use of mobile devices, 8% indicated they used more than 1 provider
Final Thoughts
Dodd-Frank Implications
Increased Focus on Investor Transparency
Continued Diversity in the Marketplace
Eze Castle Integration OverviewFounded 1995
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