Hong Kong based HFO has been selected to provide middle, back office and risk services to international multi-manager investor, Scout Global Funds. Scout Global Funds invests in a broad range of emerging, systematic and discretionary trading managers via managed accounts. The managers in which they invest on the Scout Global Funds platform cover a broad range of asset classes including listed futures, foreign exchange, international equities and options. They are located across numerous time zones and countries, and require a 24 hour service operation.
"Scout Global Funds has been investing in emerging managers via managed accounts since 2006. Our managers are up-and-coming systematic trading talent across multiple assets classes, trading frequencies and geographical location. This meant that we had to carefully select an outsourcing option capable of managing a diverse non-standard portfolio," said Oliver Alliker, Director of Scout Global Funds.
"With over twenty managers currently and several upcoming allocations, we required a group that could accommodate this kind of volume without compromising accuracy. Scout is a big believer in the use of technology to improve efficiency so we are pleased to have partnered with HFO."
HFO founder and CEO Ben Parker describes Scout Global Funds as a very sophisticated managed account investor.
"At HFO, we believe that the demand for outsourcing by multi-manager firms and managed account investors will continue as the costs and complexities of providing top-level middle and back office services internally becomes burdensome and distracting from investors’ core focus of managing funds."
"Outsourcing of back office, risk management and performance reporting provides extra comfort to all participants in the value chain, from money managers to institutional investors. Having an independent set of professional staff reviewing trades and positions has always been a challenge in a small organization, but now that this service is available at a cost-effective rate, outsourcing provides another level of protection for the end investor in the post-Madoff era," Parker said.
Scout Global was profiled in Opalesque in July. You can read that piece here.
HFO was profiled in Opalesque in August. You can read that piece here.
This article was published in Opalesque's Asia Pacific Intelligence our monthly research update on alternative investments in the Asia-Pacific region.