Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Technology, compliance, access to platforms are driving hedge fund business decisions

Friday, October 18, 2013

Bailey McCann, Opalesque New York:

In a breakdown of the type of services that attracted the hedge funds to their prime broker, authored by I.A. Englander’s Managed Accounts & Prime Services (IAE MA&PS), hedge fund managers said that technology and reporting services are the key drivers for hedge fund managers when considering which prime brokerage to choose. This viewpoint echoes some new realities for hedge funds in a new survey from KPMG, AIMA and the MFA - "The Cost of Compliance," which shows that so far, managers have spent more than $3 billion in compliance costs over the past few years.

THE IAE MA&PS survey, which was conducted in September, polled hedge funds with $500m or less in assets under management (AUM). The KPMG survey was conducted between May and August of this year and includes the views of 200 hedge fund managers representing more than $910bn in assets under management (AUM). It also included in- depth interviews with managers from North America, Europe and Asia.

Managers are making significant investments in their firms’ infrastructure to comply with new regulatory requirements. The survey found that the average spend on compliance was at least (US)$700,000 for small fund managers, $6m for medium-size fund managers, and $14m for large fund managers. "What we're seeing in the data is that the common fee structure of 1.75/20, is facing a squeeze from this compliance burden, and .5 of that 1.75 is going to cover those costs. That's a......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1