Bob Guilbert Opalesque Industry Update - More than 220 alternative investment firms outline critical front, middle and back office systems, technologies and vendors
Eze Castle Integration, Inc., a leading provider of IT services, technology and consulting to hedge funds and investment firms, today released its 2011 Hedge Fund Operations & Technology Benchmark Study of more than 220 hedge funds and alternative investment firms. The Eze Castle study provides insight into the operational decisions being made by fund managers, examining their use of technology to meet investor and regulatory requirements.
The combination of preparing for regulations and the demand for greater investor transparency is resulting in a strong focus on deploying and optimizing technology to manage, protect and more effectively use data, from the front to back office. The complete report is available here with more details highlighted on the Eze Castle Hedge IT blog. A copy of the report webinar presentation and replay is also available.
Report findings on front office operations and technologies focused on order and execution management systems, market data and analysis tools, and research management software. Key data points include:
• Market Data: The vast majority of firms use Bloomberg for their market data, however Thomson Reuters continues to be a significant player in the market.
Middle and back office operations are being more closely scrutinized as investors expect sound operational practices that minimize investment and headline risks. Additionally, the Dodd-Frank Act is contributing to back office technology adoption of email and instant message archiving. Additional findings include:
• Portfolio Accounting: Advent is the most popular vendor among survey respondents, however it is a diverse market with multiple other vendors cited.
“As the leading technology partner to the hedge fund industry we pride ourselves on our ability to guide firms through the myriad of technology solutions available. Our benchmark report provides guidance on today’s top priorities, trends and technology buying decisions for investment firms so they can make informed decisions that strengthen their operations,” said Bob Guilbert, managing director at Eze Castle Integration. “Firms can look to Eze Castle Integration to provide the critical resources and support for optimizing their technology to mitigate risk, prepare for the future and achieve daily operational excellence.”
• The majority of firms have one office location, which is in the United States. Only about one fourth of firms have an international office and/or multiple office locations.