Sat, Feb 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Given the right tools, hedge funds can evaluate broker effectiveness

Wednesday, February 22, 2012

Beverly Chandler, Opalesque London: Client engagement manager at MIK Fund Solutions, Jay Rooney has posed the question 'how can hedge fund managers evaluate the effectiveness of their brokers?’

Rooney observes that traditional asset managers and hedge funds find themselves increasingly beset by demands to monitor and measure their activity. "These activities are fundamentally divorced from their core business – generating performance for clients. As the regulatory, operating and due diligence environments ask for more tracking, more monitoring, and more reporting, management firms are diverting human and capital resources to IT, infrastructure, and operations, in order to respond to and keep up with the external requirements. One of these is measuring the effectiveness of broker selection, using a complete suite of applications for broker tracking" he writes.

Rooney understands that all the requirements are burdensome but in terms of specifically broker tracking, a 'must do’, he asks how can the activity be leveraged to gain insight into the effectiveness of various brokers, in order to, as Rooney puts it: "thereby providing benefit to the firm beyond the requirement (e.g. the tracking of broker commissions, research events, and overall performance)?"

The ability to measure brokers can be an opportunity for managers, because they now can accurately monitor each broker’s contributions to the firm. "This encompasses both the performance of an individual broker as w......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Adamas Asset Management and Ping An Insurance to co-manage $500m debt fund[more]

    Komfie Manalo, Opalesque Asia: Hong Kong-based Adamas Asset Management and Ping An Insurance Group, one of China’s largest financial institutions, have finalized a memorandum of und

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie