US HEDGE FUND SERVICES AWARDS WINNERS · PDF filehe HFM US Hedge Fund Services Awards 2015:...

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BEST PRACTICE The standout industry members in 2015 EVOLUTION Responding to challenging environments QUALITY OF SERVICE Excellence in providing for client requirements CORDIUM, COWEN PRIME SERVICES, MAITLAND, OPUS FUND SERVICES, PERSHING LLC, RICHARD FLEISCHMAN & ASSOCIATES US HEDGE FUND SERVICES AWARDS WINNERS REPORT

Transcript of US HEDGE FUND SERVICES AWARDS WINNERS · PDF filehe HFM US Hedge Fund Services Awards 2015:...

Page 1: US HEDGE FUND SERVICES AWARDS WINNERS · PDF filehe HFM US Hedge Fund Services Awards 2015: Winners Report is a celebration of the very best on offer from top vendors in the hedge

BEST PRACTICEThe standout industry

members in 2015

EVOLUTIONResponding to challenging

environments

QUALITY OF SERVICEExcellence in providing for client

requirements

CORDIUM, COWEN PRIME SERVICES, MAITLAND, OPUS FUND SERVICES, PERSHING LLC, RICHARD FLEISCHMAN & ASSOCIATES

U S H E D G E F U N D S E R V I C E S A W A R D S

W I N N E R S R E P O R T

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Strong. Transparent. Client Driven.

©2015 Pershing LLC. Pershing Prime Services is a service of Pershing LLC, member FINRA, NYSE, SIPC, a wholly owned

subsidiary of The Bank of New York Mellon Corporation (BNY Mellon). Trademark(s) belong to their respective owners.

For professional use only. Not for distribution to the public.

Does your business have an ally to help you succeed in this uncertain, ever-changing

environment? Someone who can help you fi nd opportunities in the face of rising pressures?

Pershing Prime Services is a passionate advocate for your success. We harness the

power of BNY Mellon and Pershing in order to deliver the strength, stability and

global resources you need.

A team with deep industry knowledge delivers innovative solutions centered around

your needs. From the seamless movement of collateral to unique fi nancing solutions,

we help you meet your business challenges and fi nd ways to grow at every turn.

Personally InvestedTM

[email protected]

pershing.com

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Published by Pageant Media Ltd LONDONThird Floor, Thavies Inn House, 3-4 Holborn Circus, London, EC1N 2HAT +44 (0) 20 7832 6500 NEW YORK 200 Park Avenue South Suite 1603, NY 10003T +1 646 891 2110

he HFM US Hedge Fund Services Awards 2015: Winners Report is a celebration of the very best on offer from top vendors in the hedge fund space. The contributors to this report represent firms honoured at our awards ceremony held in New York this October. From technology solutions to prime brokerage, the service providers in this report offer insight on how they came to be recognised by

industry peers as the very best in 2015.This year’s Best Boutique Prime Broker was Cowen Prime Services. Global

co-head Jack Seibald explains how this was achieved and why this was all the more impressive in a year of substantial change for the firm.

Representing Cordium, which won Best Advisory Firm – Regulation and Compliance, is Patrick Shea and Jonathan Wilson. Jonathan and Patrick share their perspectives on best practice with regard to cyber-security.

The winner of this year’s Best Administrator – Under $30bn Client Service was Maitland. Manager of risk and regulatory reporting, Pradip Roy, looks at the key considerations for an investment manager when selecting a regulatory reporting service provider.

Opus Fund Services took home Best Administrator – Small and Start-up Managers. Jorge Hendrickson reflects on this achievement and discusses why Opus deserved to be recognised.

BNY Mellon company Pershing LLC was awarded Best Prime Broker – Innovation. Mark Aldoroty and Rob Cirrotti reflect on the last year and look at the growth of liquid alternatives and their use in defined-contribution pension plans.

Grigoriy Milis, CTO at Richard Fleischman & Associates, offers fascinating insight into developing attitudes around cyber-security and makes predications about key trends emerging in 2016. RFA was recognised as Best Technology Overall in a highly competitive category.

The level of expertise represented in this report is testament to the professionalism and quality of service on offer in 2015. It is our hope that this year’s HFM US Hedge Fund Services Awards 2015: Winners Report proves to be informative and interesting, and helps to deliver further quality in 2016.

Mike SheenReport editor

T

REPORT EDITOR Mike Sheen T: +44 (0) 20 7832 6628 [email protected] HFMWEEK HEAD OF CONTENT Paul McMillan T: +1 646 891 2118 [email protected] HEAD OF PRODUCTION Claudia Honerjager SUB-EDITORS Luke Tuchscherer, Mary Cooch, Alice Burton, Charlotte Romeyer GROUP COMMERCIAL MANAGER Lucy Churchill T: +44 (0) 20 7832 6615 [email protected] HEAD OF BUSINESS DEVELOPMENT AMERICAS Tara Nolan +1 (646) 891 2114, [email protected] PUBLISHING ACCOUNT MANAGERS Alex Roper T: +44 (0) 20 7832 6594 [email protected]; David Butroid +44 (0)207 832 6613 [email protected] CONTENT SALES Tel: +44 (0) 20 7832 6511 [email protected] CIRCULATION MANAGER Fay Muddle T: +44 (0) 20 7832 6524 [email protected] CEO Charlie Kerr

HFMWeek is published weekly by Pageant Media Ltd ISSN 1748-5894 Printed by The Manson Group © 2015 all rights reserved. No part of this publication may be reproduced or used without the prior permission from the publisher

I N T R O D U C T I O NH F M U S H E D G E F U N D S E R V I C E S A W A R D S 2 0 1 5 : W I N N E R S R E P O R T

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H F M U S H E D G E F U N D S E R V I C E S A W A R D S 2 0 1 5 : W I N N E R S R E P O R T C O N T E N T S

ROUND-UP

AWARD WINNERSWe round up all the winners of the HFM US Hedge Fund Services Awards 2015

BEST BOUTIQUE PRIME BROKER

2015’S BEST BOUTIQUE PRIME BROKERJack Seibald, global co-head of Cowen Prime Services, discusses a successful year for the firm and what was done to be recognised as Best Boutique Prime Broker at this year’s awards

BEST ADVISORY FIRM – REGULATION AND COMPLIANCE

CYBER-SECURITY: UNDERSTANDING YOUR RESPONSIBILITIESPatrick Shea, partner and managing director, and Jonathan Wilson, managing consultant, of Cordium, discuss key cyber-security considerations and how to ensure best practice

BEST ADMINISTRATOR – UNDER $30BN CLIENT SERVICE

REGULATORY REPORTING: PUTTING YOUR BEST FOOT FORWARD Pradip Roy, manager of risk and regulatory reporting at Maitland, discusses what an investment manager should consider when choosing a regulatory reporting service provider

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BEST ADMINISTRATOR – SMALL AND START-UP FIRMS

A SUCCESSFUL YEAR IN FUND ADMINISTRATIONJorge Hendrickson, head of sales and marketing for Opus Fund Services, explains why Opus was recognised as Best Administrator – small and start up managers at the 2015 HFM Service Awards

BEST PRIME BROKER – INNOVATION

LIQUID ALTERNATIVES AND THE OPPORTUNITY IN DEFINED CONTRIBUTION PLANSMark Aldoroty and Rob Cirrotti of Pershing discuss the growth of liquid alternatives and their use in defined-contribution pension plans

BEST TECHNOLOGY OVERALL

THIS YEAR IN CYBER-SECURITYGrigoriy Milis, CTO at RFA, talks to HFMWeek about 2015’s cyber-security trends and his predictions for the year ahead

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2015

BEST ADMINISTRATOR – UNDER $30BN SINGLE MANAGER

BEST ADMINISTRATOR – OVER $30BN SINGLE MANAGER

BEST ADMINISTRATOR – UNDER $30BN FUND OF HEDGE FUNDS

BEST ADMINISTRATOR – OVER $30BN FUND OF HEDGE FUNDS

BEST ADMINISTRATOR – UNDER $30BN CLIENT SERVICE

BEST ADMINISTRATOR – OVER $30BN CLIENT SERVICE

BEST ADMINISTRATOR – SMALL AND START-UP FIRMS

BEST ADMINISTRATOR – TECHNOLOGY AND REPORTING

BEST ADMINISTRATOR – MANAGED ACCOUNTS

BEST ADMINISTRATOR – LIQUID ALTERNATIVES

MOST INNOVATIVE FUND ADMINISTRATOR – UNDER $30BN

MOST INNOVATIVE FUND ADMINISTRATOR – OVER $30BN

BEST ADMINISTRATOR – UNDER $30BN OVERALL

BEST ADMINISTRATOR – OVER $30BN OVERALL

BEST SHADOW ACCOUNTING FIRM BEST BANKING AND CUSTODY SOLUTION

BEST OUTSOURCED TECH INFRASTRUCTURE PROVIDER

BEST RISK MANAGEMENT TECHNOLOGY PROVIDER

BEST PORTFOLIO MANAGEMENT SOFTWARE PROVIDER

BEST FUND ACCOUNTING AND REPORTING SOFTWARE

BEST TECHNOLOGY FOR SMALL AND START-UP FIRMS

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H F M U S H E D G E F U N D S E R V I C E S A W A R D S 2 0 1 5 : W I N N E R S R E P O R T

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MOST INNOVATIVE TECHNOLOGY PROVIDER BEST TECHNOLOGY FIRM – CLIENT SERVICE BEST CLOUD-BASED SOLUTION BEST IT SECURITY SERVICE BEST TECHNOLOGY OVERALL

BEST THIRD-PARTY MARKETING VENDOR BEST RESEARCH AND DATA VENDOR BEST ACCOUNTING FIRM BEST MIDDLE-OFFICE SOLUTION BEST ADVISORY FIRM – REGULATION AND COMPLIANCE

BEST OVERALL ADVISORY FIRM BEST MARKETING AND COMMUNICATIONS CONSULTANCY

BEST INDEPENDENT CAP INTRO PROVIDER BEST ONSHORE LAW FIRM – HEDGE FUND START-UPS

BEST OFFSHORE LAW FIRM

BEST ONSHORE LAW FIRM BEST OFFSHORE LAW FIRM – CLIENT SERVICE BEST ONSHORE LAW FIRM – CLIENT SERVICE BEST BOUTIQUE PRIME BROKER BEST PRIME BROKER – TECHNOLOGY

BEST PRIME BROKER – CAPITAL INTRODUCTION

BEST PRIME BROKER – CONSULTING SERVICES

BEST PRIME BROKER – INNOVATION BEST PRIME BROKER – START-UPS BEST OVERALL PRIME BROKER

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H F M U S H E D G E F U N D S E R V I C E S A W A R D S 2 0 1 5 : W I N N E R S R E P O R T

This year has been one of significant change for our firm. Several months ago we were acquired by Cowen Group, Inc and rebranded Cowen Prime Services. Although we’ve retired the Concept Capital Markets name, our culture and our mission live on. We remain focused

on delivering excellent customer service and providing our clients with the solutions that allow them to remain focused on alpha generation. In fact, culture played a significant role in our tie-up with Cowen, as it was clear from our very first discussions that we shared a similar passion for helping our clients to perform. Winning Best Boutique Prime Broker at this year’s HFM US Hedge Fund Services Awards as Cowen Prime Services was very gratifying and we are par-ticularly proud that this marked our third consecutive year atop this category. Our entire team is always pleased when we are recognised by the hedge fund industry and we are grateful to HFM and the judges involved in the selection process for this year’s award.

A DISRUPTIVE YEARWinning the award this year is par-ticularly meaningful. As hedge fund managers and their service provid-ers know all too well, 2015 has been a very disruptive year for the indus-try as prime brokers rapidly adjust-ed to the new regulatory regimes governing their capital require-ments. Many hedge fund managers were directly impacted by this and found themselves distracted from their principal focus on investing by the search for alternative solutions, as various large banks imposed meaningfully higher revenue thresholds on their clients as they aimed to improve their returns or thinned their client ranks in an effort to downsize their balance sheets.

JP Morgan’s decision to exit the clearing and custody busi-ness is perhaps the most notable of the actions taken by the large banks. It was particularly disruptive to emerging and mid-sized hedge funds as the bank had long served as one of the premier clearing firms with the largest introducing prime brokerage platform.

With a disproportionately large number of client accounts and assets on the bank’s books, Cowen Prime Services wit-nessed the shake-up and the inconvenience on investment managers first hand. The firm perhaps also experienced its finest performance by the manner in which we served our clients who were affected. Because of our multi-clearing platform and the comprehensive and integrated portfolio reporting technologies we have implemented over the years, we were able to accommodate all of our clients with asset transfers in a timely and rather seamless manner. This con-trasts with the experience of many clients of other intro-

ducing prime brokers who weren’t offered alternative solutions by their service providers in the aftermath of the JP Morgan clearing wind down, providing us with the opportunity to readily assume such new cli-ents in an expeditious manner and restore to them the confidence they needed to focus primarily on the portfolios they manage.

The transition away from JP Morgan presented quite a challenge for our firm as we planned and implemented the transfer of many hundreds of accounts and billions of dollars in assets to several other banks, in a relatively compressed timeframe over the summer months. In the end, with a few bumps and bruises, we stood by our clients and delivered for them. And while we don’t anticipate another similar dra-matic event any time soon, should one come, we would expect to perform even better for our clients based on our team’s experience and the additional talented personnel we have since recruited.

We do, however, see additional opportunities for market share growth in the coming years as we believe the retrenchment from the prime brokerage space among large banks is likely to continue. Several of the large European banks recently announced their own ver-sions of balance sheet right-sizing and the fallout from these is just beginning. Hedge fund managers are again having to spend time in search of alternate prime brokerage solutions and probably also coming to grips with the fact that costs related to managing and financing their portfolios are going

WITH THE ADDITIONAL FINANCIAL AND

INTELLECTUAL RESOURCES MADE AVAILABLE BY OUR AFFILIATION WITH COWEN,

WE BELIEVE WE ARE UNIQUELY POSITIONED TO OFFER A CREDIBLE

SOLUTION TO MANAGERS BEING DISPLACED BY THE

LATEST ROUND OF RETREAT FROM PRIME BROKERAGE AMONG THE BIG BANKS

JACK SEIBALD, GLOBAL CO-HEAD OF COWEN PRIME SERVICES, DISCUSSES A SUCCESSFUL YEAR FOR THE FIRM AND WHAT WAS DONE TO BE RECOGNISED AS BEST BOUTIQUE PRIME BROKER AT THIS YEAR’S HFM US HEDGE FUND SERVICES AWARDS

2015’S BEST BOUTIQUE PRIME BROKER

Jack Seibald is global co-head of Cowen Prime Services. He has been affiliated with the firm and its predecessors since 1995, and has extensive experience in prime brokerage, investment management, and research dating back to 1983.

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B E S T B O U T I Q U E P R I M E B R O K E R

H F M W E E K . CO M 9

up. As they search for such solutions, managers will no doubt be concerned with counterparty risk of the balance sheet they will associate with, but also – and perhaps even more so – with the commitment of the institution to the prime brokerage business and the quality and consistency of the service and portfolio reporting technology provided. The last thing they want to do is change their prime broker-age relationship again any time in the near future.

PROVIDING SOLUTIONSWith the additional financial and intellectual resources made available by our affiliation with Cowen, we believe we are uniquely positioned to offer a credible solution to managers being displaced by the latest round of retreat from prime brokerage among the big banks. Managers are provided with a sense of comfort that the demands of their business can be readily supported, through:• The multiple clearing partners we have in place. We

expect to integrate one or two more before year end.• Our comprehensive portfolio reporting capabilities.

These capabilities are being rapidly enhanced with tools that assist managers in the portfolio manage-ment process and the addition of overseas personnel to extend client service capacity and accelerate the recon-ciliation and reporting process.

• The access we provide to world class investment research, capital markets activities and unconflicted trade execution.

Managers will also be comforted by our ability to support and report on assets they manage on behalf of investors that may be held at other custodians, as well as the continuity we can provide in the event of further changes in the prime brokerage environment.

And for those managers concerned about the possibil-ity of needing an alternative custody and prime brokerage solution in the future, we can serve in a risk mitigation role. While adding an additional prime broker may create work flow complications or other inefficiencies, our integrated portfolio reporting solution is particularly well suited to add value as an additional prime broker. With this in mind, we believe we have an opportunity to extend our reach to larger, more established managers who typically have only dealt directly with the largest banks and not engaged with introducing prime brokers.

We know from regularly communicating with our clients that they greatly value the service and attention they receive from our team. We also know that in a rapidly changing world our clients’ needs evolve and that we need to continue to invest in people and technologies to deliver the solutions and service they require. While winning this year’s award is gratifying, we understand that it reflects what we accom-plished during the preceding year and that we will need to make our offering even more compelling in the coming year to earn our clients’ business and the trust of many new ones we hope to onboard. Our entire team is indeed hard at work to achieve this objective.

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H F M U S H E D G E F U N D S E R V I C E S A W A R D S 2 0 1 5 : W I N N E R S R E P O R T

To get a sense of how big an issue cyber-security is these days, you need only turn on the news. It seems that every week another household brand suffers a major breach. In the past 12 months alone, Lloyds, Barclays, and JP Morgan all lost customer data, cyber

terrorists triggered a flash crash on NYSE and the 2014 HeartBleed bug compromised tens of thousands of web-sites. The age of the cyber threat is well and truly here.

Yet this wall-to-wall coverage can create the impression that cyber-security is mainly the province and concern of the big boys. But while it’s the big att acks that make the headlines, more than 60% of all cyber-att acks are targeted at small businesses and (in the US at least) half of small fi rms report having been targeted. Th is makes sense for the same reason that smaller businesses are more likely to be targeted by criminals – less security, more opportunities.

COMPREHENSIVE NATIONAL CYBERSECURITY INITIATIVEAs a result, the issue is high on the regulatory agenda, par-ticularly in the US where the government has spearheaded eff orts to combat the threat through the Comprehensive National Cybersecurity Initiative. Th e SEC, CFTC, NFA and FINRA have all taken steps to strengthen their cyber-security capabilities and have expanded and updated their guidelines and requirements to match. Since 2014, the SEC has been running a series of inspections and exami-nations with a focus on technology and cyber-security preparedness, with the latest round of examinations announced in a Risk Alert in September.

FCA RISK OUTLOOKRegulatory activity on the other side of the pond has been more subdued, but it would be a mistake to take this as a sign that authorities are more sanguine about the threat. While the EU announced a new Cyber Security Strategy back in 2013, the FCA hasn’t said much explic-itly. However, the FCA does in fact have a policy on data security, dating from when it was the FSA. Th e advice and guidance still very much stands. It makes clear that fi rms should take data security very seriously, that it will be reviewed as part of normal supervision and that poor data security practices can result in enforcement. Although no new guidance has been provided by the FCA, their update, FCA Risk Outlook, makes it clear that cyber-security is high on their agenda too.

Th is is all for good reason. As the news should make clear, the more sinister cyber-threats are quite literally an att empt to corrode our society’s ability to properly and reliably manage money and information. Even the smallest fi nancial fi rms are home to incredibly sensitive personal and fi nancial data. Th is is fast becoming a major concern for investors and the regulatory agenda simply refl ects this.

WRITTEN INFORMATION SECURITY POLICYSo what do fi rms need to do? A lot of rules and regulations regarding various data security practices have, of course, been in place for a long time on both sides of the Atlantic. Data protection, privacy laws – some of these are relatively old hat. Many fi rms will have had recovery plans as well as privacy, offi ce security and mobile policies – to name a few – for some time, at varying levels. But historically (and in many cases currently) these policies have been disconnected, partial and not all necessarily pulling in the same direction. Th e focus and challenge for fi rms since the onset of the SEC examinations has been to pull these disparate threads together (enhancing and extending them appropriately) into a cohesive and comprehensive Writt en Information Security Policy (Wisp).

What should this involve? Well, it is to some extent an inventory – an assessment of all the ‘points’ within your fi rm that present a potential security risk. Desktops, mobiles, laptops, servers, information on the cloud – fi rms need to have a clear view of how their security policy cov-ers all these bases. Proper, retrievable documentation is incredibly important. When the regulator (or an investor) comes knocking, you will need to be able to immediately show, in detail, the steps you are taking to ensure that clients’ data is secure.

What about the contents of said policy and documenta-tion? Well, it needs to protect against external threats. Th is is the type of threat we most oft en envision when thinking about cyber-security – the lone basement-dwelling hacker causing mischief from afar. And this sort of thing (and all external threats) certainly needs to be protected against. Th is means multiple layers of security, regularly scanning internal devices, assiduously keeping soft ware up-to-date, removing server banner information, having an outbound as well as inbound fi rewall and more.

But this is far from the whole picture. Th e biggest risk area for any fi rm, which is oft en overlooked, is internal,

PATRICK SHEA, PARTNER AND MANAGING DIRECTOR, AND JONATHAN WILSON, MANAGING CONSULTANT, OF CORDIUM, DISCUSS KEY CYBER-SECURITY CONSIDERATIONS AND HOW TO ENSURE BEST PRACTICE

CYBERSECURITY: UNDERSTANDING YOUR

RESPONSIBILITIES

Jonathan Wilson has over 20 years’ financial services experience. Jon qualified with Coopers and Lybrand before moving on to lead an asset management supervision team at the UK regulator where he was responsible for oversight of the collective investment scheme authorised unit trust trustees as well as numerous authorised fund managers.

Patrick Shea is a managing director and partner at Cordium US and serves on the firm’s US Operational Board. In his role at Cordium, Pat leads the team that manages Cordium’s compliance consulting division and runs Cordium’s Boston office.

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B E S T A D V I S O R Y F I R M – R E G U L AT I O N A N D C O M P L I A N C E

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namely the actions of your own employees. Employee behaviour, intentional or unintention-al, is responsible for nearly 40% of all information leakage. For example, in a real-life case scenario, a firm took a flash drive, put a sticker on it reading, ‘discretionary bonus information’, and planted it in the break room. Within hours it was gone. The simplest things can prove the greatest weakness and while clever technology is the first thing that typically comes to mind when we think of cyber-security, less glamorous operational measures are just as, if not more, critical. This means training and education, clearly communicated policies and looking out for odd employee behaviour patterns (logins at odd times, for example).

Of course, getting the right policies, proce-dures, training and technology in place is step one. Then you need to test it all, ideally via a third par-ty, to see if actually holds. A Wisp that only works on paper is worthless and the SEC will certainly test your systems. As the above examples show, there is a gap between even the most clearly stated policy and a successful culture of compliance.

Another aspect that sometimes gets over-looked is that your protections and policies need

to extend beyond your own firm. You are ultimately responsible for your own and clients’ data and if in the course of your business you share your data with third-party providers, you may still be respon-sible for ensuring the security of that data. So it is your responsibility to ensure that the third party has adequate security and procedures in place and that those conform to the standard set in your own Wisp. This needs to be done at the start of any rela-tionship, via the terms and agreements. Of course, terms and agreements aren’t always followed, so it is essentially another due diligence considera-tion when working with third-party providers. Do I trust this company with my firm’s data?

There’s a lot to consider when it comes to ensur-ing your firm’s cyber-security policies and infra-structure, far more than can be covered compre-hensively here. Speaking to your IT provider and compliance advisor can be good first steps. But the message is clear: it’s a priority. It’s a priority for your investors, it’s a priority for the regulator and it should be a priority for you.

For more information please visit our website at: www.cordium.com

THE SIMPLEST THINGS CAN PROVE THE GREATEST

WEAKNESS AND WHILE CLEVER TECHNOLOGY IS THE FIRST THING THAT TYPICALLY COMES TO

MIND WHEN WE THINK OF CYBERSECURITY, LESS

GLAMOROUS OPERATIONAL MEASURES ARE JUST AS, IF

NOT MORE, CRITICAL

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Whether it is Form PF, AIFMD Annex IV or CPO-PQR, the major chal-lenge with any of the data intensive regulatory filings is mostly opera-tional in nature. For example iden-tifying data sources and collecting

relevant information efficiently, converting and storing data in a usable format, interpreting the regulations and running complex calculations on the data and generat-ing regulator specified report formats for review and filing.

Furthermore, one has to be mindful of the differ-ences in methodologies across filings like Form PF and AIFMD Annex IV and ensure they respond in adherence to the individual regulator’s advice, some of which may be ambiguous. An investment manager, typically, has two ways of dealing with the challenge – either manage all this in-house, which would require dedicated operational and technical resources or look to partner with a competent ally to alleviate the burden.

Technology solutions available in the market typically provide access to a standard portal designed to generate the responses and then create and transmit regulator-specified submission files. The main goal is to create automated workflow using underlying data files.

For an investment manager, this means they still have to dedicate on-going resources to make use of such a portal and also produce the data files in formats that are compatible with such technology platforms. There are some unavoidable challenges with collating the underly-ing data mainly because they come from different sourc-es and systems and although some of them can possibly be extracted in the desired formats, some have to be often manually compiled.

Datasets related to the likes of risk, collateral and bor-rowing are mostly put together manually and sometimes even need referencing external data sources like prime broker reports that are difficult to automate. From our experience of working with clients on regulatory reports, we also see a lot of manager-specific reporting nuances that add a ‘customised’ flavour for each manager’s report-ing. All of these reasons make a ‘one-size-fits-all’, ‘fully automated’ approach unachievable and ultimately leave a fair amount of legwork for the investment manager.

An increasingly logical solution is for the investment

manager to leverage its existing relationships and look for a partner who can take over the operational burden as well as help them navigate through the regulatory land-scape with qualified guidance where necessary.

A fund administrator offering an ‘end-to-end’ regu-latory reporting solution can do this effectively. The natural advantage is that they already house most of the underlying data required to respond to the regulator’s questions and they are also likely to have access to any external data sources (like PB reports), if required. They can further enrich their existing capabilities to meet the regulatory reporting needs of the clients like submitting the reports to regulators on behalf of the manager or generating the risk metrics for regulatory filing purposes. The only task that remains for the manager is the review and approval, which is the best use of their time.

So what should an investment manager factor in when choosing a regulatory reporting service provider?

END-TO-END SUPPORT AND ZERO OPERATIONAL BURDENSThe service provider should be able to take care of all the heavy lifting of the data and preferably also complete the filing with the regulator, leaving only the review of the reports for the manager. As the data lies in different systems and sometimes even offline and with external parties, an administrator with already established con-nections to these data sources is best suited to provide an end-to-end service. The manager does not have to be a party to the data coordination exercise. Preparing regu-latory reports internally also creates a seasonal strain on the manager’s operations team because these are always due either quarterly, semi-annually or annually and some have extremely short reporting windows like AIFMD Annex IV.

TECHNICAL ASSISTANCEOne of the key complexities of the regulatory filings is determining the underlying assumptions that are used to respond to various ‘open-to-interpretation’ questions from the regulator. While it remains completely the pre-rogative and responsibility of the investment manager to choose the approach that best represents their internal accounting policies, a service provider would be able to act as a sounding board and help its clients by shar-ing best practices. These should typically be discussed

PRADIP ROY, MANAGER OF RISK AND REGULATORY REPORTING AT MAITLAND, DISCUSSES WHAT AN INVESTMENT MANAGER SHOULD CONSIDER WHEN CHOOSING A REGULATORY REPORTING SERVICE PROVIDER

REGULATORY REPORTING: PUTTING YOUR BEST FOOT

FORWARD

Pradip Roy manages the regulatory and risk reporting initiatives for Maitland’s hedge fund services in North America. He works with clients across jurisdictions on their regulatory and transparency reporting needs, including Form PF, AIFMD Annex IV and OPERA. Mr Roy has a strong fund administration background of close to 10 years and worked for HSBC, JP Morgan, Northern Trust and Citco prior to joining Maitland. He has an accounting degree.

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B E S T A D M I N I S T R ATO R – U N D E R $ 3 0 B N C L I E N T S E R V I C E

1 4 H F M W E E K . CO M

during the onboarding process and documented as the ‘accepted reporting procedures’ to be used for subse-quent reporting periods.

KEEPING UP WITH THE REGULATORY ENVIRONMENTManagers need not only to dedicate resources, but also keep up with the ever evolving reporting obligations of the regulatory environment. A service provider with a strong focus on this domain can help investment manag-ers meet their growing reporting needs. They possess a natural advantage over an in-house team due to their experience with other client filings and specialising in the reporting process. With a specialised team with their respective strengths working behind the scene, the man-ager can focus on its core business.

REPORTING SYNERGIES ACROSS REGULATORS A fund administrator offering regulatory filings across regions and regulators will have already developed syn-ergies among these filings as the underlying data set required is majorly similar and only the format and some of the methodologies differ. Such an administrator is likely to have already invested in building efficient data flows and robust processes that they can utilise to meet the investment manager’s reporting needs. This leads to standardisation – establishing clearly defined procedures across reporting jurisdictions, keeping in mind the indi-vidual regulatory advice. This efficient way to manage the filings eliminates duplication of efforts and ultimate-ly benefits all the parties and the regulators also receive consistent data. Fund administrators offering reporting services might also be able to offer a more competitive pricing given they already host the data on their systems and they can help the manager avoid some of the hosting

fees typical to stand-alone technology solutions.

FLEXIBILITYSome investment managers have funds or managed accounts that are administered by more than one admin-istrator, which creates a uniquely difficult situation in terms of data coordination and normalisation. Dealing with different systems and parties with variation in data quality can make the reporting exercise cumbersome. Given that the reporting obligations are unavoidable, bringing in a provider who has the experience and is flexible enough to work through these data related chal-lenges can save a lot of trouble for the manager.

ADDITIONAL SERVICESThe investment manager should assess if they have any other specific needs that are either part of the regula-tory reports or extensions of it. Some managers do not calculate the regulator specified risk indicators as a part of their internal risk management practices, but may still need such numbers for reporting to the regulators. Some managers also produce other industry-recognised reports like the ‘Open Protocol’ (OPERA) for their investors and should check if their regulatory reporting provider can offer such reporting solutions.

Finally, the decision to invest in ‘in-house’ resources or ‘off-the-shelf ’ technology versus outsourcing to an able service provider is one that the investment man-ager would take after considering their internal capabili-ties and the complexity of their regulatory obligations. Nevertheless, the benefits of an end-to-end managed reporting service definitely give fund administrators offering regulatory reporting services an edge over the other options available.

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Cordium is the

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1 6 H F M W E E K . CO M

H F M U S H E D G E F U N D S E R V I C E S A W A R D S 2 0 1 5 : W I N N E R S R E P O R T

By way of introduction, Opus Fund Services is a global fund administrator, servicing clients across a wide range of investment strategies, structures and domiciles. Our focus is simple: to provide an institution-al, high touch, consistent and customis-

able service to all clients regardless of where they are in their business lifecycle. We continue to work very closely and effectively with both new launches and existing funds.

That said, we are honoured to have been recognised as the ‘Best Administrator – small and start-up manag-ers’ at the 2015 HFM Service Awards, which were held recently in New York City.

2015 has been an exciting year for Opus and I strong-ly believe this achievement is a result of our internal strengths – specifically our people and technology. It is also a reflection of the approach that we take and the strong rela-tionships that we build with our clients and other industry partici-pants. We see ourselves as a com-mitted partner to clients and our entrepreneurial mindset allows us to truly understand and meet client and investor needs. I will discuss our clients, focus areas and approach in greater detail below.

As we do in other areas, we have approached the new launch market in a consistent manner. We focus on providing custom-ised solutions that fit a client’s needs on day one, while always keeping future growth and ser-vice requirements in mind. We deliver these services in a timely, efficient and scalable manner and do so at fee levels that make sense for managers and their investors. We also focus on our core strengths and avoid navigat-ing away from the services that we believe should be part of our role as a full service fund administrator. We find this approach resonates well with prospective clients who are in the process of searching and selecting

service providers. They are likely looking to strike the perfect balance between technology, scope of services, client service, expertise and industry reputation with pricing that is reasonable and appropriate to their AuM level and investor base. I believe we continue to be the best “value-buy” within the fund administration space.

We continue to see a consistent number of new fund launches, among new and existing managers who are launching new fund products. The entrepreneurial spir-it remains strong both among portfolio managers and traders who are striking out on their own, typically with a concentrated number of investors who are backing the launch with initial capital in the fund entity and/or the general partner entity as a seeder.

Positive equity market conditions typically lead to investor optimism and gradual increases in capital inflows to the fund industry. While this trend has led to

strong launch activity, significant AuM growth beyond the initial raise can always be quite difficult. This is true even in “good times” since fund performance, regard-less of investment strategy, is inev-itably compared to the S&P500, which continues to be slightly positive for the year (+1.83% as of 20 November). This also ropes in the popular topic of hedge fund (under) performance and fees. Pressures from investors on fees continue, creating the need for service providers to deliver ser-vice offerings that meet institu-tional operational demands while being sensitive to cost.

Long-short, long-biased, equity-quant and event-driven remain the most popular launch strategies within the hedge fund bucket.

We have also seen considerable growth in Private Equity (PE) and Venture Capital (VC). In

addition to launch activity and investor interest in the space, there has also been a quickly growing trend away from self-administration. This is an obvious conclusion for their hedge fund peers, but it hasn’t been the norm

PE AND VC MANAGERS AND INVESTORS ARE RAPIDLY CONCLUDING

THAT OUTSOURCING THE ACCOUNTING, INVESTOR SERVICES, BANKING AND

AUDIT/TAX SUPPORT FUNCTIONS MAKE BOTH

OPERATIONAL AND BUDGETARY SENSE

JORGE HENDRICKSON, HEAD OF SALES AND MARKETING FOR OPUS FUND SERVICES, EXPLAINS WHY OPUS WAS RECOGNISED AS BEST ADMINISTRATOR – SMALL AND START UP MANAGERS AT THE 2015 HFM SERVICE AWARDS

A SUCCESSFUL YEAR IN FUND ADMINISTRATION

Jorge Hendrickson is head of sales and marketing for Opus Fund Services and is based in the firm’s New York City offices. Prior to joining Opus in early February 2013, he worked in prime brokerage sales at Concept Capital Markets (now Cowen Prime Services). Previously, he allocated seed capital and infrastructure services to emerging managers at Bay Head Capital, and held roles at Intrepid Capital Management and Bridgewater Associates.

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H F M W E E K . CO M 17

within PE and VC. With strong fund admin-istrators such as Opus who have expertise in the space, PE and VC managers and inves-tors are rapidly concluding that outsourcing the accounting, investor services, banking and audit/tax support functions make operational and budgetary sense.

In other areas, Opus continues to lead with-in the marketplace and peer-to-peer lending space. Our focus on innovation, technology and integration with the key players and part-ners in the space has allowed us to provide clients with an institutional and robust offer-ing. We believe that our expertise and ser-vice offering allows clients to focus on per-formance and creates “operational alpha” for managers and investors. We can also provide comprehensive pre-launch consulting services to managers who may be looking to enter the space for the first time. Marketplace lending is an industry that is quickly evolving and Opus can help clients navigate the launch process.

Opus is also working closely with family offices. They often benefit greatly from hiring a third-par-ty fund administrator to handle their books and records and to provide them with aggregate level reporting across all entities and investments. It has traditionally been quite common for family offices to handle all operational, middle/back office and accounting aspects internally with staff and/or by implementing internal accounting systems. We continue to see a trend towards outsourcing those responsibilities to a fund administrator and insti-tutionalising their operational set-up. In addition to providing NAV packages for their fund(s), we also produce an aggregate level reporting package (for example, balance sheet, income statement, position, P&L reports) for the entire family office and help support tax and audit (if needed) at the end of the year.

As 2015 quickly comes to an end, we are looking forward to another exciting year to come. Please feel free to contact us to discuss our services in greater detail or to meet the team.

2015 HAS BEEN AN EXCITING YEAR FOR OPUS AND I STRONGLY BELIEVE THIS ACHIEVEMENT IS A

RESULT OF OUR INTERNAL STRENGTHS - SPECIFICALLY

OUR PEOPLE AND TECHNOLOGY

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H F M U S H E D G E F U N D S E R V I C E S A W A R D S 2 0 1 5 : W I N N E R S R E P O R T

As the industry watches the growth of liq-uid alternatives among institutional and individual investors, fund managers are also looking ahead. Th e retirement mar-ket may be the next frontier. It represents a large and growing pool of assets driven

by the importance of retirement savings across multiple investment segments. How is growth in the retirement space opening the door to liquid alternative strategies?

There continues to be a structural shift in the market-place from defined benefit (DB) to defined contribution (DC) plans. In fact, DC plans have become the central structure for retirement savings in the US. If you look at an IRA as a traditional wealth management solution with access to all kinds of investments, you can under-stand why people often move money to an IRA. They want and need to access those advisers and more flexible investment options. Alternatives have become an impor-tant part of those strategies as investors look for new ways to hedge risk. Exposure to these strategies outside of DC plans has led us to question why we cannot have those kinds of vehicles in DC plans.

HFMWeek (HFM): How can liquid alternatives fit into a DC plan?One way for alternative investments to permeate the DC space is through the independent advisers and RIAs that act in a fiduciary capacity. These advisers often create their own advisory models. So when alter-natives are included in these turnkey investment port-folios or packaged investment advice, you inherently give plan participants the right structure to utilize alter-natives. As we figure out how to embed these advice solutions we usher in the opportunity to access liquid alternatives.

Increasingly, plan advisers are focused on new strate-gies to improve plan participant outcomes. They under-stand how liquid alternatives can carry through to the plan participants and help mitigate risk while still capturing upside. But before plan advisers can feel comfortable rec-ommending liquid alternatives to their clients, they need to feel that alternative managers are launching funds built on strategies that are transferable and will translate well into liquid form. Those funds with transferable strategies can now find a place in the growing segment.

Rob Cirrottiis a managing director for Pershing, a BNY Mellon company, where he leads Retirement Solutions. Rob oversees the strategy and development of retirement and insured solutions to help clients grow retirement assets. Rob is a board member of the SPARK Institute, and a member of the SIFMA Retirement Committee, American Society of Pension Professionals & Actuaries, Insured Retirement Institute and the Money Management Institute Retirement Committees.

Mark Aldorotyhas had a prime brokerage career spanning more than 25 years. Currently, Mark is a managing director for Pershing, a BNY Mellon company. He is a member of Pershing Prime Services Management Committee and leads the Prime Services Sales and Relationship Management teams. Recently, Mark has been featured in Bloomberg Markets, HFMWeek andAbsolute Return.

LIQUID ALTERNATIVES AND THE OPPORTUNITY

IN DEFINED CONTRIBUTION PLANS

MARK ALDOROTY AND ROB CIRROTTI OF PERSHING DISCUSS THE GROWTH OF LIQUID ALTERNATIVESAND THEIR USE IN DEFINED-CONTRIBUTION PENSION PLANS

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B E S T P R I M E B R O K E R – I N N O V AT I O N

H F M W E E K . CO M 19

HFM: What is an attractive DC plan-focused alterna-tive offering?There are two elements that should be considered to make an alternative offering attractive to a DC plan. First, plan advisers need to examine what reasonably converts from the hedge fund space to the DC plan space. The strategy needs to feel like a daily liquid product, and not everything will prove to be transferable. Second, the DC plan space itself wants to know how to get greater access to hedge funds. DC platforms are evolving to accommodate less frequent liquidity events, so as hedge funds begin to understand what products work within the space, alignment will increase, driving more liquid alternatives into DC plans.

The challenge is to position liquid alternatives within these embedded advice solutions. One avenue to consider is packaged target date funds. By gaining access to the fund’s decision-mak-ers, whether they are the portfolio managers or CIOs, alternatives managers can position them-selves well within the larger DC plan strategy.

HFM: What are the common reservations when first considering including alternative strategies? How can they be addressed?Ultimately, the performance of a DC plan is depend-ent upon the fiduciary. As the fiduciary becomes more comfortable with alternatives, the trend to include these vehicles in a plan’s investment options will continue to grow. From a DC plan adviser’s standpoint, engendering that level of comfort is the biggest challenge. The DC plan advisor understands the value of these investments, but the fiduciary, the one who is truly responsible for the plan, has the biggest hurdle. The fiduciary must make decisions for the plan that are prudent. First they need to understand and educate themselves on the invest-ment. Then balance the benefits of these new alternative investment vehicles with the liability and risk of incorpo-rating them in the plan participants’ investment options.

Two facts that should not be ignored: DC plans offer ingredients for a successful outcome and plan participants can use all the help they can get. So, if an alternative strategy can help plan par-ticipants see greater returns with no significant additional risk, then from an investment policy perspective it becomes a strategy worth con-sidering. The bottom line should be whether liquid alternative funds can help produce greater returns without increasing an individual’s risk. If liquid alternative funds can get plan participants on a path to a more secure retirement, then they have a role in the DC plan.

HFM: What message do DC plan advisers need to communicate to DC plan fiduciaries?Liquid alternatives can play an important role in a retirement plan. Fiduciaries need to under-stand the benefits to their plan participants and their portfolios. Increased returns or hedges that reduce risk can increase returns which can have a significant impact over time.

But experience and comfort go hand in hand. These liquid alternative strategies might be completely new and unfamiliar to fiduciaries. We have seen the evolution of new products before. Mutual funds are household names now; eventually the same thing will happen with alterna-tives and hedging strategies. As these strategies become more pervasive, fiduciaries will understand them better. When fiduciaries are more familiar with them, they will

welcome alternatives into their plan lineups.

HFM: What are the most critical evaluations for DC plans to make when they are consider-ing including alternative investments?One could argue that fiduciaries have an obliga-tion not only to avoid risk but to actively seek increasing returns. A fiduciary should not focus solely on how to demonstrate a prudent selection process. He or she needs to think about how to carry plan participants to an adequate retirement. A more progressive fiduciary wants to know where to look for investments that will deliver the best returns, while being mindful of the investment risk involved, and help participants grow their invest-ments to the levels they need for a secure retire-ment. That shift in the marketplace is an opportu-nity that plan advisers can seize.

More plans are bringing in specific, professional invest-ment fiduciaries. These fiduciaries do look to alternative vehicles, and they want to be innovative around the way they are being evaluated. These fiduciaries are still judged on the process and thoughtfulness of the investments they recommend, but are increasingly being judged on plan participant outcomes. If a plan adviser cannot show value with greater outcomes, the questions about the suc-cess of the DC system will continue to be raised.

HFM: What are the next steps for advisers, liquid alternative managers and DC plan fiduciaries?Education around liquid alternatives must continue for RIAs and the investment professionals within the indus-try who are holding themselves out to be 401k or DC

plan specialists.Liquid alternative managers should also pro-

vide education and resources for DC plan fidu-ciaries so the fiduciary is best equipped to make decisions about the prudence of the alternative fund in the DC plan. A plan fiduciary may even look to the alternative fund manager to help share investment liability.

While the role of a DC plan fiduciary remains the same, in providing prudent investment deci-sions, the investments to consider are ever chang-ing. With the growth of alternative investments, DC plan fiduciaries need to educate themselves on new products and how they will, or will not, fit into their DC plan investment menu. By con-sistently evaluating new investment vehicles and asset allocations for suitability within a DC plan, plan participants will be well positioned to have adequate retirement savings through a combina-tion of investment options fit to their needs and retirement savings goals.

WITH THE GROWTH OF ALTERNATIVE INVESTMENTS, DC PLAN FIDUCIARIES NEED TO EDUCATE THEMSELVES ON NEW PRODUCTS AND HOW THEY WILL, OR WILL NOT, FIT INTO THEIR DC

PLAN INVESTMENT MENU

DC PLANS OFFER INGREDIENTS FOR A

SUCCESSFUL OUTCOME AND PLAN PARTICIPANTS CAN USE ALL THE HELP THEY

CAN GET

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H F M U S H E D G E F U N D S E R V I C E S A W A R D S 2 0 1 5 : W I N N E R S R E P O R T

THIS YEAR IN CYBER-SECURITY

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B E S T T E C H N O L O G Y O V E R A L L

H F M W E E K . CO M 21

HFMWeek (HFM): Cyber-security has been a key topic of discussion over the last year. Could you give us an overview of how the industry’s perception of and approach to cyber-threats has developed over the last 12 months?Grigoriy Milis (GM): Cyber-security has certainly been a major topic of discussion for the industry over the last year. It has always been a relatively important area for the fi nancial industry, particularly in the hedge fund space, but it has really been jump-started by the release of SEC cyber-security guidelines. Th e guidelines have brought together a lot of best practices and requirements, which have helped funds achieve a much more holistic view of what is needed of them with regard to cyber-security.

At fi rst it was thought that guidelines coming from a regulatory body in this way, would be met with a degree of resistance. It was feared that people would do the bare minimum to achieve compliance. However, we have seen a substantial and genuine will from industry members to address cyber-security shortcomings. Th is is an extremely positive development and this att itude will help the industry to improve its cyber-security dramatically.

HFM: How has RFA been able to help clients over-come new cyber-security challenges?GM: RFA are doing a substantial amount of research in the cyber-security space. We are trying to identify, and to a degree predict, certain trends in the cyber-security space and identify the best technologies to deal with those trends. We are also trying to identify the major points in the current cyber-security defence solutions and under-stand how to improve upon them.

In addition, we are educating clients on a variety of cyber-security topics and we have changed a lot of per-ceptions that exist in the industry, including perceptions about cloud and how data is protected.

Today the best solutions in the cyber-security space are quite oft en coming not from the established, big ven-dors, but rather from emerging providers. Cyber-security is essentially a never-ending batt le.

For every move the ‘good guys’ make, the ‘bad guys’ are making two. Th is is why a lot of tech-nologies in the cyber-security space are losing their eff ectiveness very quickly. A new breed of technolo-gies and vendors are coming into the mainstream, which are more adaptive and deal with developing cyber threats in a more eff ective way.

Th is is exactly what we are trying to bring to our clients. We are not necessarily selling more prod-ucts to them, but rather selling them more effi cient products. In addition, we are assessing the latest ‘philosophical’ viewpoints in cyber-security, with regard to where you focus your att ention.

For the fi nancial community, it means it will help to maintain their cyber-security posture, while also not restricting their staff ’s productivity and mobility.

HFM: How much of a risk has the growth in popular-ity of working on mobile or portable formats become for the hedge fund industry? How can this risk be mitigated?GM: Th e increase in mobility, decoupling the user from a desktop, has certainly created a lot of challenges in the cyber-security space. It changes how people work and, most importantly, it changes how people consume data.

With the traditional model, your data is concentrated within you perimeter and you can build some protections around that. With the adoption of mobility, it becomes more challenging to protect your data and essentially changes the paradigm of how you deal with the protection of your data. Th is is because when data moves freely and it becomes more diffi cult to keep control of it, particularly in a cloud system where anyone could connect to it.

Restricting the free movement of data is obviously not desirable as it aff ects your company’s competitiveness, productivity and overall business. Th is is why changing the approach to how data is protected, shift ing emphasis on building protection inside the data itself and ensuring this protection is moving the data regardless of where the data is located. Moving into 2016 and beyond, I think this will be one of the biggest shift s in att itude.

HFM: What are the possible consequences of a data-breach for a fund?GM: Th e consequences can be quite severe, depending on the type of data-breach. Let’s say the least consequential would be loss of productivity as a result of an interception. Th is is really nothing compared to, for example, gett ing hit by banking fraud or a serious data breach that will infi ltrate some kind of personally-identifi able information from your network.

In these examples you could lose a substantial amount of money. You could potentially lose a few hundred thou-sand dollars, which may not seem like a devastating loss to a multi-million dollar fund. However, if you lose the per-sonally-identifi able information of investors and employ-ees, the consequences can be more serious.

First, you have to disclose it. As a result, you will suff er negative publicity and potentially a regulatory fi ne if you cannot prove that you had suffi cient protection in place to prevent it.

Second, you have to disclose the breach to your inves-tors and they could potentially pull their capi-tal out, which could obviously have a devastat-ing eff ect on a hedge fund. In addition you will have to engage lawyers, authorities and forensic experts, adding to the expense of the breach. It is a potentially business threatening situation.

HFM: As we move into 2016, what trends are emerging in the cyber-security space that you would expect to be a theme throughout the next 12-18 months?GM: Coming into the next year, I think there are three key emerging technologies that will move into the mainstream:• Next generation end-point protection• Next generation data protection• Next generation cloud security.

CYBER-SECURITY IS ESSENTIALLY A NEVER-

ENDING BATTLE. FOR EVERY MOVE THE ‘GOOD GUYS’

MAKE, THE ‘BAD GUYS’ ARE MAKING TWO

GRIGORIY MILIS, CTO AT RFA, TALKS TO HFMWEEK ABOUT 2015’S CYBER-SECURITY TRENDS AND HIS PREDICTIONS FOR THE YEAR AHEAD

Grigoriy MilisAs CTO, Grigoriy is responsible for managing all aspects of infrastructure design and leads the R&D team in the evaluation and testing of new technologies. Grigoriy also manages the Systems Architecture team that handles high-level escalations from all technical departments. He is an IT veteran with more than 15 years of experience working in the financial industry.

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S E R V I C E D I R E C TO R YH F M U S H E D G E F U N D S E R V I C E S A W A R D S 2 0 1 5 : W I N N E R S R E P O R TPR

IME

BR

OKER

AGE

Cordium // London (headquarters), NY, Boston, SF, HK // UK: Sarah Donnelly // T: +44 (0) 203 141 9658 // [email protected] // USA: Hannah Weinstock Gallagher // T: + 1 (212) 515 2800 // [email protected] // HK: Derek McGibney // T: +852 3478 7378 // [email protected] // www.cordium.comCordium is the leading global provider of regulatory compliance consulting, accounting and tax services and software to the asset management and se-curities industry. Today, Cordium has offices in London, New York, Boston, San Francisco, Malta and Hong Kong and employs more than 200 experienced professionals who support more than 1,500 investment businesses. Our clients range from start-ups to large firms with well-established track records. Our asset management and securities sector focus means we always bring direct, relevant experience to advising our clients, helping them to meet their compliance and regulatory challenges and turning regulatory compliance into a must-have business advantage.CO

MPL

IANC

E CO

NSUL

TANT

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Jack Seibald, Managing Director, Global Co-Head of Prime Brokerage Services // Direct: +1 (516) 746 5718 // Mobile: +1 (516) 359 7503 // [email protected] // Cowen Prime Services, 1010 Franklin Avenue, Suite 303, Garden City, NY 11530

Cowen Prime Services, LCC offers comprehensive brokerage and related services that provide traditional and alternative investment managers with customis-able and scalable solutions. We were built by former investment managers to serve hedge fund managers, managed account platforms, institutional investors, family offices, and registered investment advisers with turnkey solutions designed to free clients to focus on their core competencies. Our offering features world-class custody and clearing options, multi-asset class capabilities, leading execution and order management systems, a seasoned execution desk, a range of financing options, a highly professional operations and customer support team, comprehensive portfolio reporting capabilities, and capital introduction.

Mark Aldoroty, Head of Sales and Relationship Management // [email protected] // T: +1 (201) 413 4445

Pershing Prime Services delivers a comprehensive suite of prime brokerage solutions. We provide stable counterparty strength, extensive access to lendable securities, alternative sources of finance, dedicated client service, robust reporting tools, global execution and custodial solutions through the integrated platform of BNY Mellon. Pershing Prime Service is a service of Pershing LLC (member FINRA/NYSE/SIPC), a BNY Mellon company.

FUN

D AD

MIN

ISTR

ATO

RS

North America - Scott Price, [email protected], T: +1 (312) 623 9681 // Europe - Patric Foley-Brickley, [email protected], T: +44 7808 682871 // Africa – Andre le Roux, [email protected], T: +27 (0)82 900 5615

Maitland is a global advisory and administration group offering independent third-party fund administration globally to managers of pension funds, mu-tual funds, hedge funds and private equity funds. Our services extend across all fund types, strategies and investment styles. We operate at the highest technological and governance levels integrating best-of-breed technology to provide automated front, middle and back-office administration services to our clients. We operate from 14 offices across 12 countries with 1000 employees and over $210 billion in assets under administration. www.maitlandgroup.com

Robin Bedford, CEO // [email protected] // T: +1 (441) 234 0004 // Jorge Hendrickson, Business Development // [email protected] // T: +1 (646) 470 6957

Opus Fund Services is an award winning independent fund administration firm. Within a SSAE16 approved process, Opus uses unique technology and flat fee pricing to provide automated, integrated middle & back office administration services to domestic and offshore hedge fund and alternative investment vehicles. The ONE platform has received widespread industry recognition including “Best Overall Fund Administrator with AuA < $30bn” by HFMWeek, and Top-Ranked Fund Administrator by Global Custodian for an unprecedented five consecutive years. For more information on Opus Fund Services, please visit www.opusfundservices.com.

RFA, US: Gair Betts, COO // T: +1 212 867 4600 // 330 Madison Avenue, 19th Floor, New York NY 10017 UK: George Ralph, Managing Director // T: + 44 207 093 5010 // 52 Brook Street, London W1K 5DS

RFA has been the trusted technology partner to our clients for more than twenty five years. Offering a full range of technology solutions with global data center operations, RFA serves the IT needs of businesses including hedge funds, private equity funds, fund of funds, private wealth management and alternative asset management firms. Whether clients require on-site or cloud-based solutions, telephony or data systems, fully-managed IT or project management, RFA has the expertise to meet the industry-specific needs of our clients. RFA is headquartered in New York City with operations in New York, Connecticut, Boston, MA, and London. Website: www.rfa.comTE

CHNO

LOGY

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PRIME BROKERAGE SERVICES

Technology& Reporting

CapitalIntroduction

BusinessConsulting

Portfolio Analytics CustodianOptions

ExecutionServices

Financing & Stock Loan

ClientServices

Jack D. SeibaldManaging Director,Global Co-Head of Prime Brokerage [email protected]

Michael S. Rosen Managing Director,Global Co-Head of Prime Brokerage [email protected]

Penn-Miller JonesManaging Director,Head of Prime Brokerage Sales [email protected]

www.cowenprime.com Member: FINRA, NFA and SIPC

COMPREHENSIVE SOLUTIONSFOR INVESTMENT MANAGERS

Cowen Prime Services offers a comprehensive suite of brokerage and related services that provide traditional and alternative investment managers with

investment managers to serve hedge fund managers, managed account platforms,

and customer support team, comprehensive portfolio reporting capabilities, and capital introduction.

DESIGNED TOLET YOU FOCUSON WHAT’S IMPORTANT

PRIME BROKERAGE SERVICES

Technology& Reporting

CapitalIntroduction

BusinessConsulting

Portfolio Analytics CustodianOptions

ExecutionServices

Financing & Stock Loan

ClientServices