Sat, Dec 20, 2014
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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und