Sun, May 29, 2016
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. Americas - Australian banks sending U.S. hedge funds broke, Ryan Puerto Rico ‘rescue’ bill could be windfall for hedge funds[more]

    Australian banks sending U.S. hedge funds broke From SMH.com.au: US hedge funds are not having the best of years. Profits are hard to find, they're underperforming and the punters are losing patience, withdrawing US$15 billion ($20.8 billion) in the March quarter. They're expected to wit

  2. Investing - Billionaire Wilbur Ross likes the look of Chinese bad loans, Hedge funds are still relevant in a diversified portfolio: 4 fundamental criteria for superior manager selection[more]

    Billionaire Wilbur Ross likes the look of Chinese bad loans From Bloomberg.com: U.S. billionaire Wilbur Ross said he’s considering investing in nonperforming loans in China, as Moody’s Investors Service said that the nation has the tools to prevent a financial crisis in the near term. I’

  3. Investing - Blackstone gives pricey Canadian energy and property thumbs down, One of the most concentrated hedge fund bets is getting crushed, Facebook is hedge funds' new tech darling,[more]

    Blackstone gives pricey Canadian energy and property thumbs down From Bloomberg.com: Canada’s energy assets are uneconomic and real-estate markets overvalued, making them less attractive for investment than in the U.S. and elsewhere, according to Tony James, president of Blackstone Group

  4. Study - Only 30% of institutional hedge fund portfolios beat the benchmark[more]

    Bailey McCann, Opalesque New York: A new study from CEM Benchmarking, an independent provider of cost and performance analysis for pension funds, shows that only 30 percent of institutional investors hedge fund portfolios beat the benchmark after fees. The study provides in depth analysis of real

  5. Opalesque Exclusive: $1bn hedge fund club grows to 668 managers, continues to dominate (Part One)[more]

    Komfie Manalo, Opalesque Asia: Despite an underwhelming 2015 and a slow start to 2016 in terms of performance, one group of managers that continues to dominate the assets of the hedge fund industry is the so called $1bn club – hedge fund managers with at least $1bn in assets under management (AU