Sun, Apr 22, 2018
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 - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its