Sat, Jul 4, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund industry spends on average 7% of total operating costs on compliance

Friday, October 18, 2013

Benedicte Gravrand, Opalesque Geneva:

A new survey shows the hedge fund industry is taking its compliance obligations seriously. However, the sheer capital commitment it entails, even if it makes the financial world a safer place, can be a real burden for many managers.

According to The Cost of Compliance, a new report produced by the Alternative Investment Management Association (AIMA), the Managed Funds Association (MFA) and KPMG International, the average spent on compliance is currently at least $700,000 for small fund managers, $6 million for medium-size fund managers and $14 million for large fund managers.

The survey, which also includes interviews, was conducted between May and August 2013, among 200 hedge fund managers representing more than $190 billion in AuM.

Those managers, it was found, have already spent more than $3 billion so far on compliance costs, that is, anywhere between 5% and 10% of their operating costs on compliance technology, headcount and strategy.

Hard on smaller firms However, this is not easy on smaller firms, and on those trying to launch. As a percentage of their assets and relative to operating costs, they seem to be spending more money compared to their larger peers. "More than a third of hedge fund managers polled with less th......................

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. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner