Hedge Fund Operations & Technology Benchmark Study 2012
Dec 04, 2014
Hedge Fund Operations & TechnologyBenchmark Study 2012
AgendaSurvey Methodology
Respondent Profile– Assets Under Management– Investment Strategy– Offices/Employees– Prime Brokers
Findings– Front Office – Middle & Back Office
Looking Forward
Survey Methodology320 Total Respondents
Financial Services Firms
Survey completed in 1st half of 2012
Respondent Profile
Respondent Profile
Respondent Profile
• Top single strategy = Long/Short Equity
• Of multi-strategy firms, two-thirds trade Long/Short Equity as one of their investment strategies.
Secondary Prime Brokers mirrored those in the Primary category. Top 4:• Morgan Stanley• Goldman Sachs• JP Morgan• Credit Suisse
Data Findings
Front Office
Order Management System
Market Data Vendors
Market Analytics
Research & Document Management
Order Management SystemConvergEx’s Eze OMS, Bloomberg’s AIM and Advent’s Moxy most commonly used
Others• Calypso• Fiserv • ITG OMS• Misys• Neovest• Paladyne• RealTick
32% 23%
Note: Some respondents provided multiple answers.
Market Data Vendors90% of respondents using Bloomberg– Thomson Reuters most popular second/alternative– 80% of Thomson Reuters users also have Bloomberg
Others• Capital IQ• Dow Jones• Markit• Morningstar• Zephyr
90%
20%
Note: Some respondents provided multiple answers.
Market AnalyticsOne-third of respondents using multiple tools
73% of respondents using Bloomberg– Of those, 1 in 4 using Bloomberg + another tool
Others• Barra One• Edgar Online• MatLab• Morningstar• TheStreet.com73%
16% 14% 13%
Note: Some respondents provided multiple answers.
Research & Doc ManagementMajority of respondents not using RMS; however adoption is increasing
Top 3: Proprietary, Advent Tamale & Code Red
Others• Autonomy• Factiva• Matlab • Oracle• Preqin• Risk Matrix• Sophis• Thinkfolio
56%
Note: Some respondents provided multiple answers.
Middle & Back Office
Portfolio Accounting
Risk Management
Outsourced Administration
Customer Relationship Management
Message Archiving
Mobile Devices
Portfolio AccountingAdvent Systems hold 37% of market
“None” respondents likely relying on outsourced administration
Others• Everest • Indata• Peachtree• FixQ• SunGard’s
Investran• Tradar
37%
33%
Note: Some respondents provided multiple answers.
Risk ManagementMajority of firms are NOT using a risk management system
Many likely outsourcing risk capabilities to an administrator
Note: Some respondents provided multiple answers.
Others• Barra One• Goldman Sachs• ReThinkIt• Factset• Novus• Trueview• Investor Analytics• Indus Valley• Amoeba
Outsourced AdministrationOne-third of firms using one of Top 4 administrators
Larger firms more likely to use multiple administrators
Others• AIS Fund Admin• Gravity Financial• Northern Trust• BNY Mellon•
Conifer/JonesTrading
• Kaufman Rossin• Fortis• BONY• CACEIS•
In-house/proprietary
• Deutsche Bank • HSBC
Customer Relationship ManagementPerTrac and Salesforce the most commonly used systems
Wide variety in “Other” category
Others• Goldmine• Oracle’s Siebel• Navigator• Sage SalesLogix• Fundrunner• Imagineer• Maximizer• The Next Round
(TNR)• Qube
40%
Mobile Technology SolutionsMajority of firms still rely on BlackBerry
35% of firms using both BlackBerries and iPhones– In 2011 study, only 10% of firms using iPhones
95%
Note: Some respondents provided multiple answers.
95%
Message ArchivingGlobal Relay dominates with 50% of responses
Social media message archiving gaining importance
Cloud AdoptionBased on June 2012 Cloud Adoption Trends Survey
Half of firms are using the cloud for application hosting
Survey: Cloud Adoption Trends Within the Investment Management IndustryPresented by Eze Castle Integration & IDG Research Services, June 2012
Looking Forward
Continued cloud adoption for infrastructure and application hosting
Regulations will play an important role (e.g. Dodd-Frank)
Investors will become even savvier on the technology front– Due diligence process will be critical for firms
seeking allocations
Eze Castle Integration Overview
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Awards Received
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