ORCHESTRATING ALPHA: THE HEDGE FUND OPERATING SYSTEM

For the financial markets 2014 was another year of change as sentiments moved forward, strategies were intensely scrutinized, and regulation remained uncertain.¹

It was no different among hedge funds as their assets under management grew – only to see more funds fold at a faster rate – compressed by conservative positioning and mediocre returns, and unable to sustain the pressures of transparency and key operational tools to hunt alpha. While the old guard held on to legacy, non-real-time infrastructures, emerging hedge funds began to exercise better credibility through smarter and faster cloud-based solutions, while topping the hedge fund industry by performance.²

This is the world we live in today; a fund-eat-fund, multi-prime, fragmented and uncertain landscape—where those that survive will do so by using strategies where data must be strictly-managed, where risk is everything, and where the “hedge fund” is not only a vehicle for other institutions, but an asset class for institutional and retail investors alike. A hedge fund, any hedge fund, is no more than the sum of its parts—no different than an automobile. It is in fact the parts that determine whether its optimal speed will be 80 miles per hour and how quickly it can decelerate to take advantage of a once-unforeseen corner of opportunity.  It’s the same with the system(s) that hedge funds rely on to manage the business, whether the critical components be an order, execution and risk management system (OERMS), automated end-of-day processes, cap intro, or the Portfolio Manager him/herself.

Thus, alpha is a result of these parts but not as they are individually—instead as they are orchestrated together for more informed investment decisions, better data management, and the total evolution of client relationships.

Learn how a modern hedge fund operating system can support the parts of a fund at a specific locale as well as cross-office while providing real-time, customized, mobile and accurate workflows for the portfolio manager, head of trading and ops and tech.  Click here or the View/Print button below to continue reading!

And, for a personalized demonstration of our mobile-optimized hedge fund solutions for your front- and middle-office, visit http://liquidholdings.com/demo.