According to the report, hedge fund firms are increasingly reliant on technology to support their business infrastructure. Priorities on the agenda include handling market data, the integration of systems, and addressing the challenges of manual OTC derivatives. Still, hedge funds see tremendous room for technology improvements, within their own shops and with their providers, as they struggle with automation, connectivity, derivative handling and data access.
"Hedge funds are using technology and internal control processes to enhance compliance and risk operations," says Denise Valentine, senior analyst with Aite Group and co-author of this report. "And every day, hedge fund firms become smarter regarding their operations and technology options."