Thu, Nov 5, 2026
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

58% of hedge funds say digital transformation is the most important strategic initiative

Tuesday, July 04, 2023

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

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: DACH institutions push alternatives to 32.3% of portfolios as hedge funds make a comeback[more]

    Matthias Knab, Opalesque for New Managers: Institutional investors in Germany, Austria and Switzerland now hold almost a third of their portfolios in alternative investments, and they are more confident than ever in

  2. KRX chief courts CalPERS for bigger bet on Korea[more]

    Korea Exchange Chairman and CEO Jeong Eun-bo held talks with California Public Employees' Retirement System, or CalPERS, to promote greater investment in South Korea's capital markets, the bourse operator announced Wednesday. Jeong met with CalPERS Chief Investment Officer Stephen Gilmore.

  3. 755 Unicorns, $8 Trillion: Fifth Era maps the autonomous digital economy[more]

    Matthias Knab, Opalesque for New Managers: Fifth Era Partners, a specialized asset manager focused on the convergence of Internet, AI/Agentic and Blockchain technologies, has released the findings of its 13th Bia

  4. Opalesque Exclusive: "Enough beta plays" - how Fasanara builds an alpha-only multi-strategy platform[more]

    Matthias Knab, Opalesque for New Managers: Most multi-strategy funds promise diversification. Fewer can explain why their return streams should stay independent when markets turn. In an Opalesque SkillsLab investor

  5. Opalesque Exclusive: Governance, Scale, and Boutique Resilience in a Consolidating Hedge Fund Industry[more]

    Matthias Knab, Opalesque for New Managers: The hedge fund industry has undergone significant consolidation in recent years, with capital increasingly concentrated among large multi-strategy platforms. Yet boutique m