Sat, Apr 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Algorithmics survey finds hedge funds will need to bow to demands of asset owners

Thursday, May 05, 2011
Opalesque Industry Update – Hedge funds will need to bow to the demands of their asset owners according the findings of a recent survey of hedge fund risk managers by Algorithmics, the leading provider of enterprise risk solutions. Asked to name the key market challenges currently facing hedge funds, survey respondents listed regulation and the pressure from investors for greater transparency as their biggest challenges.

When asked about their investors’ concerns the same picture emerged: respondents considered these to be transparency of fund operations, assessment of risk systems as part of the due diligence process and costs of fund management. Liquidity, ideally daily, was also considered a high priority for investors. These findings were confirmed by another poll conducted by Algorithmics in a recent webinar, where 84% agreed that asset owners would place increasing pressure on external asset managers for greater risk transparency*.

Martin Botha, Director, Buy Side Solutions, Algorithmics, said: “These findings are supported by the fact that we are seeing enquiries from hedge funds for the institutional-strength risk systems they need to meet their asset owners’ due diligence requirements as part of their manager selection. Hedge funds are beginning to recognize the importance of best practice risk management in attracting funds from investors.”

Dr Andrew Aziz, Executive Vice President of Risk Solutions at Algorithmics, added: "Growing regulatory demands - including UCITS IV, AIFMFD and Dodd Frank - are driving the need for more frequent and higher quality risk reporting. At the same time, post Madoff, investors have no tolerance for weak operational risk management or weak governance at the funds managing their assets. These factors are driving investors’ demand for more transparency, solid operational infrastructure and reliable risk data from their hedge fund managers.”

(press release)

For a copy of the full survey results, visit: Source

For more information about Algorithmics’ solutions for the hedge fund industry, visit: Source

Algorithmics is the world's leading provider of risk solutions. Financial organizations from around the world use Algorithmics' software, analytics and advisory services to help them make risk-aware business decisions, maximize shareholder value, and meet regulatory requirements. Supported by a global team of risk experts based in all major financial centers, Algorithmics offers proven, award-winning solutions for market, credit and operational risk, as well as collateral and capital management. Algorithmics is a member of the Fitch Group. Source

Algorithmics’ hedge fund survey was conducted in early 2011 and included hedge funds with AUM between £250million and £1 billion. For a copy of the full survey results, visit: Source

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n