Wed, Sep 28, 2016
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. Nobel Sustainability Trust, Prince Albert II of Monaco help launch major new initiative to drive sustainable technologies[more]

    Matthias Knab, Opalesque: The Nobel Sustainability® Trust ("NST") is leading a major new initiative to finance, incubate and accelerate the development of clean technologies. The initiative will start with the formation of the Nobel Sustainability Fund® ("NSF"). NSF will drive faster access t

  2. Studies - Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements, Cambridge: Look to private investments for best access to LatAm growth[more]

    Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements A new study of the hedge fund space by industry law firm Seward & Kissel LLP reveals a wealth of information regarding established hedge fund managers’ use of side letters—special agreements

  3. Activist News - Caesars 'optimistic' on deal with hedge fund creditors[more]

    From Reuters.com: Caesars Entertainment Corp said on Monday it remains "optimistic" of reaching a $5 billion deal with the bulk of its creditors to push its main operating unit out of bankruptcy, but one hedge fund bondholder said it will pursue litigation. Caesars offered a sweetened $5 billion set

  4. Hedge funds recover from losses as central banks give markets a respite[more]

    Komfie Manalo, Opalesque Asia: The Lyxor Hedge Fund index was up 0.4% from the week ending September 20 (-2.4% YTD), supported by the willingness of central banks to remain accommodative, Lyxor Asset Management said in its weekly briefing. It ad

  5. Perry Capital closing flagship fund after almost three decades[more]

    From Blooomberg.com: Richard Perry, one of the biggest names in hedge funds, is calling it quits after 28 years. Perry, 61, is winding down his New York-based flagship fund as the industry confronts one of the most tumultuous periods in its history. In a letter to investors Monday, he said his style