Just over half of the companies involve compliance experts (55.9%) in the data reporting process which is surprising considering regulatory pressures on the hedge fund industry. 69.5% of the respondents stated that marketing staff are involved, which underpins that data reporting is understood by most of the companies as an importantpart of client relationship management. SQL is used by 35% and Sharepoint by 13.3% of the respondents for data management.Ī vast array of staff is involved when developing and preparing reports.
#Hedge software software#
Using hundreds of spreadsheets across the organization could lead to fragmentation of data and silos of knowledge which would require very substantial business and process optimization.ĭespite the preference of hedge funds to develop technology solutions in-house due to security concerns and IP protection, 3rd party software is used by 61.7% of the respondents as compared to 46.7% using in-house software. Though hedge funds are moving to online tools when it comes to reporting, the preferred choice for managing data is clearly the use of spreadsheets as confirmed by 71.7% of the respondents. Given the possibilities of web portals to manage data it appears that other media are not perceived as important in the near future.
As mentioned above, the advantages of technology for data reporting will outweigh the advantages of using printed reports which always lead to a delay in reporting due to processing, printing and distribution. With 13.1% the usage of printed reports to communicate data will hit the most significant decrease. To improve data flows, portals also allow the possibility to integrate the trading platform and expert data directly after the trade into the portal which allows the review of live data by the client. Furthermore, analytic tools and dashboards can be implemented. Reasons for this increase could be the possibility of customizing the portals to the individual requirements of the companies and clients. In contrast, the usage of web portals for data reporting is expected to increase by 4.9% from currently 60.7% of the participating companies using this medium to 65.6%. However, there is a decline of 8.2% when asked for future data reporting tools. At the moment, 73.8% of the respondents stated that they are using emails to report their data. Given the regulatory pressure on transparency, data protection and security, hedge funds need to re-think their approach to data management and reporting.
#Hedge software Offline#
Questionnaires were forwarded to 556 hedge fund executives and the study analyses the following key issues in order to create a comprehensive understanding of the industry’s decision making when it comes to technology:ĭata management and reporting – reporting online, managing offline To fully understand the state of software use within hedge funds, Dr Sven Kuenzel and Anika Schlien at the University of Greenwich Business School, in collaboration with Copia Digital, conducted a study to assess current and future trends.
In its place it is vital to have the appropriate systems so hedge fund managers can remain in control of the diverse risks undertaken and demonstrate that they can react to the poorest situations. Technology by itself is no longer a differentiator if it’s not there it simply will be impossible to run the business successfully. Technology is not only an enabler for driving performance, but a critical factor for operating a multi-asset hedge fund.
To generate alpha, long/short equity strategies are no longer adequate and hedge funds are now relying on multi-asset strategies, which require them to operate at the highest level in terms of people, process and technology. Investors are also becoming sophisticated, demanding more information on the valuation, liquidity and exposures of the hedge funds in order to assess potential risk factors. Regulators are now requiring hedge funds to provide more transparency into their risk and control function by asking them to demonstrate if they could provide valuation services in-house, in case the fund administrator went bust. The hedge fund industry is in the midst of a period of significant change driven by the pressure of both regulators and investors.
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