2012 Hedge Fund Operations & Technology Benchmark Study

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Our 2012 Hedge Fund Operations & Technology Benchmark Study offers insight into the specific vendors, products and solutions being utilized by investment managers today.

Our 2012 Hedge Fund Operations & Technology Benchmark Study offers insight into the specific vendors, products and solutions being utilized by investment managers today.

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  • Introduce Eze Castle Integration... Founded in 1995 Offices across the world, including 8 offices in the U.S. and locations in London, Geneva and Singapore Over 550 hedge fund clients, managing $300B+ of assets Services and solutions to meet the needs of hedge funds and alternative investment firms, everything from PCs and critical infrastructure to backup and storage solutions, to business consulting and project management
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 
  • It may seem challenging to run your own business, particularly if you have become accustomed to the standards and methods of analyzing and processing your work through proprietary technology systems as an employee of a large firm. When confronted with the vast number of choices for your own firm, it is easy to become overwhelmed and end up with a less than optimal technology choice. We have identified five common mistakes that managers make and what you can do to avoid them.#1: You want the perfect solution, and you will not rest until you find it.Your business life would certainly be a lot easier if you could buy a solution that met 100% of your technology needs. Undoubtedly, you will meet a vendor or two you will promise you such a thing. The truth is, a successful approach to technology planning usually means negotiating, purchasing and deploying systems from multiple vendors and service providers. And the more complicated your business, the more technology providers you may require to fulfill your needs.  Be wary of the small, new firms offering all-in-one solutions. Will they be around in the years ahead to stand behind the promises they make today?  #2: You are so focused on today’s to-do list, you have not considered the future beyond your launch. Today, you have a new fund—a young company with what are perhaps modest needs. If you select your technology for the business you have today, you will likely find yourself re-making these decisions within three to five years. before you commit to any technology solutions, envision how your practice will look in the long term.  An important question to consider today is whether the decisions you make for your firm pre-launch will support your business as it grows. #3: You haven’t fully considered the multiple roles technology plays in your current work environment.In your current or previous working life, perhaps you had the luxury of an IT department or professional who made sure technology did all the jobs you needed it to. You didn't have to think about solutions in the way you do right now. Consider the work you do or did as an employee and take note of which systems supported that work. You will need email, phones, quote feeds and other technological support in your new hedge fund, and perhaps, additional systems you did not encounter in your previous situation.  #4: You believe you can manage a new hedge fund AND all of its technology needs on your own. If professional tech support is not on your list of needs before launching your fund, add it now. Your new firm will require IT assistance to build servers, manage networks and handle day-to-day needs. If you prefer, you can outsource project-related work to consultants or contractors, and there are third-party providers whom you could contract for ongoing maintenance. However, before selecting an outside option, consider hiring a full-time professional. #5: You’re tempted to decline the training options on your IT systems. Most vendors offer some sort of training to accompany their products. You should take them up on these offers! Once you’ve rolled out your new systems, you need to learn how to use them. This training exists to enable you to maximize your investment. Additionally, ask vendors about user groups, which can be invaluable resources for easing frustration as you adopt multiple unfamiliar systems. 

Transcript

  • 1. Hedge Fund Operations & Technology Benchmark Study 2012
  • 2. Agenda Survey Methodology Respondent Profile – Assets Under Management – Investment Strategy – Offices/Employees – Prime Brokers Findings – Front Office – Middle & Back Office Looking Forward
  • 3. Survey Methodology 320 Total Respondents Financial Services Firms Survey completed in 1st half of 2012
  • 4. Respondent Profile
  • 5. Respondent Profile
  • 6. Respondent Profile• Top single strategy = Long/Short Equity Secondary Prime Brokers mirrored those in the Primary category. Top 4:• Of multi-strategy firms, two-thirds trade • Morgan Stanley Long/Short Equity as one of their • Goldman Sachs investment strategies. • JP Morgan • Credit Suisse
  • 7. Data Findings
  • 8. Front Office Order Management System Market Data Vendors Market Analytics Research & Document Management
  • 9. Order Management System ConvergEx’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.
  • 10. Market Data Vendors 90% 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.
  • 11. Market Analytics One-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 73% • TheStreet.com 16% 14% 13% Note: Some respondents provided multiple answers.
  • 12. Research & Doc Management Majority of respondents not using RMS; however adoption is increasing Top 3: Proprietary, Advent Tamale & Code Red Others • Autonomy • Factiva • Matlab • Oracle 56% • Preqin • Risk Matrix • Sophis • Thinkfolio Note: Some respondents provided multiple answers.
  • 13. Middle & Back OfficePortfolio AccountingRisk ManagementOutsourced AdministrationCustomer RelationshipManagementMessage ArchivingMobile Devices
  • 14. Portfolio Accounting Advent Systems hold 37% of market “None” respondents likely relying on outsourced administration Others • Everest • Indata 37% • Peachtree • FixQ • SunGard’s Investran 33% • Tradar Note: Some respondents provided multiple answers.
  • 15. Risk Management Majority of firms are NOT using a risk management system Many likely outsourcing risk capabilities to an administrator Others • Barra One • Goldman Sachs • ReThinkIt • Factset • Novus • Trueview • Investor Analytics • Indus Valley • Amoeba Note: Some respondents provided multiple answers.
  • 16. Outsourced Administration One-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
  • 17. Customer Relationship Management PerTrac and Salesforce the most commonly used systems Wide variety in “Other” category Others • Goldmine • Oracle’s Siebel • Navigator • Sage SalesLogix • Fundrunner • Imagineer • Maximizer 40% • The Next Round (TNR) • Qube
  • 18. Mobile Technology Solutions Majority of firms still rely on BlackBerry 35% of firms using both BlackBerries and iPhones – In 2011 study, only 10% of firms using iPhones 95% 95% Note: Some respondents provided multiple answers.
  • 19. Message Archiving Global Relay dominates with 50% of responses Social media message archiving gaining importance
  • 20. Cloud Adoption Based 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 Industry Presented by Eze Castle Integration & IDG Research Services, June 2012
  • 21. Looking ForwardContinued cloud adoption for infrastructureand application hostingRegulations will play an important role(e.g. Dodd-Frank)Investors will become even savvier on thetechnology front– Due diligence process will be critical for firms seeking allocations
  • 22. Eze Castle Integration OverviewFounded 1995Headquarters 260 Franklin Street, 12th Floor, Boston, Massachusetts, 02110 Chicago, Dallas, Geneva, Hong Kong, London, Los Angeles, Minneapolis, New York City,Additional San Francisco, Singapore and StamfordOffices • Strategic IT Consulting • Private Cloud Services • Outsourced IT Solutions • Business Continuity Planning • Professional Services • Disaster RecoveryCore Services • Project & Technology Management • Compliance Solutions • Communications Solutions • Storage Solutions • Network Design & Management • Colocation Services • Internet Service • E-Mail & IM ArchivingAwards Received
  • 23. 260 Franklin Street, 12th floor Boston, MA 02110 617-217-3000 www.eci.com