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Alternative Market Briefing

Mid-sized hedge funds like LibreMax Capital competing with hedge fund behemoths at world class data center NY4

Friday, March 25, 2011

From Kirsten Bischoff, Opalesque New York:

Once you have located the non-descript, Secaucus, NJ building that houses world-class data center facility NY4 there are a few barriers to entry. These include security staff, keypad codes and five different biometric scanners that evaluate over 300 points on your palm and determine who does or does not have access to the inner sanctum. The client base for this hub includes major banks, enormous hedge fund firms, service providers and others who have equipment on site performing everything from high frequency trade algorithms to intricate risk management calculations on billions of dollars of investments. These are the firms that can get past what is arguably the biggest barrier to entry for those hoping to compete in this space: cost.

That final barrier is why tech firm Gravitas (also one of the first tenants at NY4) has positioned itself at the facility with a "seven figure space" and a plan to boost small and mid-sized hedge funds looking to gain access to NY4, by building a turnkey solutions that can start in the "low four figures" per month range.

"We believe a world-class infrastructure like this should be available to everyone, even smaller funds," Gravitas CEO Jayesh Punater said this week. "We are the equalizer."

Before taking a small group of reporters on a tour of the ......................

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