• Thursday, January 15, 2015

The digital revolution is quietly transforming what today’s fund manager looks like. The days of being tied down to your desk to track investments and research and handle investor inquiries are disappearing. They are being replaced by a mobile, connected, empowered fund manager that can carry the most important aspects of their business in the palm of their hands.  Through mobile devices, you can be more connected — to your investment team, counterparties, and potential and existing investors. Dynamic hedge funds are leveraging this connectivity to create a more nimble, pro-active and ultra-effective business.  But, how are these fund managers benefitting from a true mobile experience?

Here’s how a mobile-manager can be smarter than their deskbound competition:

1. Raise more assets

Let’s start with the most important advantage of a mobile hedge fund manager: the ability to dedicate more time to raising assets and less time on admin functions. 

Winning allocations from institutional investors comes down to having access to the information that matters most to your potential investors. That’s where a Hedge Fund Operating System comes into play—having the fund’s historical and real-time information readily available demonstrates you have the controls in place to manage larger, more complex allocations.

This efficiency frees you to spend more time proactively discussing the information that matters—methodology, performance, and track record.

2. Stay connected… Everywhere

A mobile fund manager is able to access all the important and relevant information you may need for a meeting, right in the moment. If you are looking for yearly returns or a refresher on your most recent transactions, a hedge fund operating system will give you access– whether on-site or at a golf course.

And if questions posed by your investor(s) change in route to your destination, you’re covered– you never have to worry about having the right print out in advance again. It’s like having your investment team always with you, ready to brief you on all the information you need to know.

Evolution of Hedge Fund Technology

Manual. Disparate. Missing Key Capabilities. Multiple Points of Failure. Non-Real-Time. Stationary.

Agile. Powerful. Real-Time. Complete.

3. Outclass your peers

In a recent study, over 87 of 100 hedge fund managers indicated they were using the cloud in some shape or form today. With the right cloud-capabilities, fund managers would have a competitive edge over their peers due to the speed at which they could actively track investments while responding to investor needs, all from any mobile device.  

By placing the fund’s profile at your fingertips, including performance, Shadow NAV and risk statistics, an operating system can help you quickly respond to investor inquiries, provide these same clients with an investor-portal for immediate access to more detailed information about their investments, and allow you to present an actionable pitch book from an iPad, backed by profound data.

4. Simplify your ‘on-the-go’ investing process

The markets don't wait—neither should your investors.  Often times, the most tedious part of investing is being away from the office and without tools to manage decisions. Getting an order executed and understanding its impact on P&L and key risk statistics while away might require you to take valuable time out of your day for time consuming back-and-forth with your analyst(s), trader(s) and broker(s).  While on the road or attending multiple meetings throughout the day, this can negatively impact your results.

A mobile manager is able to streamline the investment process and even execute and track deals while on the go.  The days of relying on manual processes are disappearing– the hedge fund operating system will enable you to manage investments, from trade execution to broker reconciliations and investor-reporting, in real-time, all the time, everywhere.

What does a mobile fund manager have access to through a hedge fund operating system?
  • Complete Portfolio History: Access your entire repository of investment activity while on the go, to highlight and detail your growth from yester-year to today
  • Portfolio & Risk Analytics: Understand exactly how you are performing in real-time with a comprehensive view of key metrics so you can tailor your discussions with management and your investors
  • Activity Tracking: Always be in the loop with easy access to and real-time alerts about your investments.

5. Personalize transparency

Hedge fund managers refusing to provide transparency is the single greatest reason for an investor veto, according to Deutsche Bank’s Global Prime Finance group’s third annual Operational Due Diligence Survey.

The amount of data investors require to assess whether to allocate to a fund has grown tremendously in the past few years. A fund is no longer based solely on performance and pedigree— the collection of performance and risk statistics are now weighted with and against the modern tools and services you have in place to actively manage the business. The hedge fund operating system affords you the opportunity to ‘personalize transparency’ to suit each of your investor’s requirements.


However, having access to the data does little good if you are unable ‘swipe’ to get to the information you may need most. You need real-time, present-day views of metrics – all distilled into cohesive views so investors can glean the information front and center.

6. Institutionalize

All too often, the daily tasks and responsibilities of a fund manager are spread out over a wide range of tasks, many of which require time-away from investing.  This can make your daily workflow, especially if you are at a start-up/emerging fund, a headache. A hedge fund operating system institutionalizes your business while making life just a little bit easier by providing the right mix of capabilities, workflows and services to accomplish all of your tasks in one place.

Trading and order management capabilities allow you to electronically trade and manage investments. Pre- and post-trade analytics help you monitor investments in real-time, so you understand the impact your latest transactions have on the overall portfolio.  Shadow NAV and co-sourced middle-office functions such as corporate actions and broker reconciliations become automatic and stored in a secure database in case you need to go back later for review.  Finally, comprehensive reporting tools will keep you up to date so you can have more informed discussions with investors at a moment’s notice.

Simplify your workflow
One Platform
The problem many fund managers face every day, is the array of unconnected tools they need to accomplish their daily tasks. Switching between these tools can introduce latency, data discrepancies, and manual processes, which waste valuable time that could be spent with investors.

Automated Tasks:
A Hedge Fund Operating System can automate tasks that would otherwise be manual.  Benefit from an outsourced middle-office so you can concentrate on alpha.


7. Focus on the Greeks– especially Alpha

As we mentioned, mobility allows fund managers to streamline once tedious and time consuming operations.  This creates more time to focus on alpha-generating initiatives and client-relations activities that move potential investors through the capital-raise process.  This means more time to refine your investment methodology and more face time with investors to talk through your fund's track record.

The flexibility of a hedge fund operating system also allows you to support your specific investment and client relations processes. Customization can help provide the information you need at the right time for proactive discussions. Where you may benefit from having real-time performance and risk statistics available side-by-side, your colleague might depend on having specific risk characteristics including delta and beta on one screen at all times.

The right system will allow you to tailor your experience to maximize productivity and drive the most important Greek– Alpha.

Hedge Fund Solutions that Simplify Success for Today’s Fund Manager

Accelerate your performance and ability to attract and retain assets in 2015 with these 7 tips to success.  For a demonstration of mobile-optimized hedge fund solutions for your front- and middle-office, click here.

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