Sun, Jul 5, 2015
A A A
Welcome Guest
Free Trial RSS
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

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