Fri, Oct 9, 2015
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 - AQR Capital and Renaissance Technologies raise stakes in Southwest Airlines[more]

    From In the previous part of this series, we saw how institutional investors played Southwest Airlines (LUV) in 2Q15. Now let’s move on to the trades executed by key hedge funds in Southwest Airlines over the same period. … Most of the hedge funds that had significant exposu

  2. Manager Profile - Pimco alternative funds flourish as 30-year bond rally fades[more]

    From Inside Pacific Investment Management Co., the bond behemoth that lost two chief investment officers last year and saw almost $500 billion of client money leave, a hidden profit engine is easing some of the pain. For more than a decade, Newport Beach, California-based Pimco has qu

  3. Niche Investing - Art investment funds: Attracting institutional and other new investors[more]

    From The Deloitte/ArtTactic Art and Finance Report 2014 (the "Art and Finance Report") noted that the "global art investment fund market was estimated to be worth at least $1.26 billion in the first half of 2014." This seems almost inconsequential when juxtaposed with the $54 billion of

  4. Hedge fund Barnegat survives September’s market selloff[more]

    Komfie Manalo, Opalesque Asia: Bob Treue’s $679 million Barnegat Fund proved resilient after another month of market letdown as the hedge fund gained 2.2% last month, bringing its year-to-date gains to 2.8%. Treue said in his monthly report to i

  5. …And Finally - Japanese men want upgrade on their virtual girlfriends[more]

    From Five years after News of the Weird mentioned it, Japan's Love Plus virtual-girlfriend app is more popular than ever, serving a growing segment of the country's lonely males -- those beyond peak marital years and resigned to artificial "relationships." Love Plus models (Rinko