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Laxman Pai, Opalesque Asia: Broadridge's latest digital transformation study finds 58% of hedge funds say digital transformation is their most important strategic initiative. A failure to invest in new technology or update legacy systems could leave managers disadvantaged in a difficult environment for raising capital.
Hedge funds are allocating substantial resources to technology: respondents say 26% of their overall IT budget is currently allocated to digital transformation, a jump from 2022 when that figure stood at 13%.
Hedge funds intend to boost investment into cloud platforms and applications by 26%, cybersecurity by 24%, and data analysis and visualization tools by 22% over the next two years. Such solutions will help managers centralize and systematize their data, enabling them to augment their performance, streamline operations, and improve client (and regulatory) reporting.
Innovation is also high on hedge funds' agendas. Managers plan to increase spending on AI (Artificial Intelligence) and machine learning by 20%, and Blockchain by 21% over the next two years.
According to the survey, relative to traditional asset managers and private capital firms, hedge funds are among the most enthusiastic adopters of AI. Eighty-one percent of respondents say the technology is already changing the way they work.
Broadridge surveyed senior leaders at hedge funds about their digitalization and next-gen tech strategies as part of its 2023 Digital Tr...................... To view our full article Click here
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