Hedge fund managers are finally embracing the opportunities generated by the evolution of tech solutions, according to a report released by EY late last year. More than half of hedge fund managers are now innovating to improve their operational efficiency and enhance their processes.
With new technologies and hedge fund and portfolio management solutions now incorporating more extensive data sets than ever, powerful computer models are transforming the industry. It is vital this potential is leveraged - 2018 is expected to be a challenging year for the industry with continued pressure from regulatory risks and greater scrutiny upon pricing structures.
The list below provides some of the best portfolio and investment management on the market depending on the unique requirements of each hedge fund.
Imagine Software provides risk and portfolio reporting capabilities for a wide array of hedge funds. Superior reporting capabilities plus complete historical data archiving enables high levels of transparency.
Imagine delivers asset support for all trading strategies. It provides advanced software functionality, comprehensive data management and end-of-day and start-of-day processing services.
Key portfolio functionality includes unlimited portfolio drilldowns, real-time pricing, limits monitoring and controls, as well as live views of P&L values and securities tracking. Risk functionality spans stress testing and intra-day portfolio VaR and factor analysis. Managers can easily examine exposure to shifting market prices, interest rates, volatility, yield-curve assumptions and other risks.
The Imagine Risk Aggregator enables greater transparency on investments while accessing more meaningful risk analyses. This is done by independently sourcing and verifying information from third parties before aggregating the data. Interactive data visualization dashboards enable drill down functionality with a full suite of detailed reporting features. These capabilities empower users to analyse a wide variety of factors including market values, exposures, sensitivities and strategies.
PYRAMID is Ferential’s flagship hedge fund solution, an integrated platform providing foreign exchange trading, derivatives trading, debt issuance trading and fixed income portfolio management for all teams.
It can be used as a central trading, valuation, and data repository for all derivatives and securities in a portfolio but is flexible in allowing integration with existing systems.
Real-time data is updated for individual trade and portfolio valuations. Users can view and report in real-time, deal level or portfolio level analytics such as interest rate or volatility sensitivities.
Consistent firm-wide reports on risk limits and trade permissions ensures an integrated approach to risk management. Extensive analytical capability within PYRAMID provides the ability to manage and report by trader, branch, profit centre and country among others.
Finastra’s FusionInvest provides a flexible and modular platform for hedge fund portfolio management, risk management and investment operations. It maintains broad asset class coverage and a leading analytics framework.
Its asset class coverage includes fixed income, global equities including ETFs, real estate and commodities.
FusionInvest enables consolidation of front, middle and backend systems to improve automation of investment processes. This minimises the risk of manual errors while maximising the speed and efficiency of processing trades. The result is greater collaborative workflows across asset classes and the simplification of connectivity to a wide range of third-party solutions and service providers.
A real-time investment book of record (IBOR) simplifies the complexity in investment management by maintaining accurate position data for effective portfolio management, performance measurement and accounting and reporting. The IBOR will ensures that consistency information and analytics can be distributed for informed decision in every team.
FundCount offers hedge funds simplicity, flexibility and accuracy in one fully integrated accounting and reporting solution. It is a partnership, portfolio and general ledger multicurrency accounting software solution that tracks, analyses and reports the value of complex investments for hedge funds, family offices, fund administrators and private equity firms. FundCount improves operational efficiency and offers flexible, easy-to-use reporting.
Functionalities of the FundCount software includes automating P&L and cash flows between entities in complex master-feeder structures, allocating gains and losses and creates NAV by partners or by funds, automatically calculating management and investment fee structures across any number of partnership investment vehicles, generating capital calls and tracks commitments, side pockets and historical P&L equalization automatically, and highlighting portfolio risk measurement statistics including beta, alpha, Sharpe, Sortino, standard deviations and up/down market ratio.
MX.3 is unique in its depth and breadth of functionality and coverage from a single platform, unlike others that often rely on a patchwork of multiple systems.
Designed specifically for capital markets, Murex’s MX.3 platform can work alongside existing hedge fund trading systems. It can be used either as an integrated trading and risk solution or as a standalone risk tool to existing systems. It will connect your business processes while powering trading and analytics operations, post-trade and risk management.
MX.3 allows for real-time decision-making and compliance with evolving internal policies and regulations. It enables efficient management of market, credit and liquidity risk across all asset classes.
The platform’s structure allows for the service to be extended by embedding additional processes and calculations to connect to external applications. Such extensions may include new types of financial products, market data or custom analytics.
Numerix is the leading provider of innovative capital markets technology solutions and real-time intelligence capabilities for trading & risk management. Its Oneview Enterprise Platform is the next generation pricing, risk, analysis and trade management platform designed for the next evolution in the capital markets.
With access to Numerix’s CrossAsset library, it offers the industry’s most comprehensive collection of models and methods, allowing hedge funds to price all financial instrument using the most advanced calculations.
A flexible architecture for defining bespoke deals enables managers to integrate internal models and deploy a unified pricing and risk solution for all derivative and fixed income positions.
These features are further complimented with access to rich business service analytics that can be accessed directly via the Oneview platform.
AutoRek is utilised to reduce back office costs, improve straight-through-processing and to comply with ever increasing financial regulations.
It is a powerful hedge fund solution for data management. It encompasses tools for data validation, automated reconciliations and workflow and case management. It streamlines the amalgamation of data supplied from often incongruent systems to provide transparency, governance and robust audit trails.
AutoRek specialises in automated reconciliation, helping asset management clients to manage high volume transactions and client records. This provides an extremely efficient calculation process, reducing the amount of capital required to top-up client accounts.
Broadridge offers a comprehensive network of hedge fund software. Integrating front, middle and back office platforms, the modular solutions include order management, portfolio management, reference data management, data warehouse and custom reporting and reconciliation.
A flexible architecture enables hedge funds to use the full platform of products or to select single functional components and integrate them within an existing infrastructure.
Portfolio Master is the cornerstone of Broadridge’s hedge fund system, enabling fund managers to streamline operations and reduce complexity. Alongside Portfolio Risk, it enables hedge funds to quantify, analyse and manage credit and market risk across almost all portfolios and asset classes.
Compliance Master is an automated rule-based compliance management solution that provides powerful post-trade compliance reporting capabilities. It allows hedge funds to define rules, run compliance reviews and produce in depth client targeted reports.
For start-up and growing hedge fund managers, FastStart combines mission critical trading, portfolio and risk management applications with market data, operational support, and IT infrastructure, all within a single application.
Finally, Broadridge offers REVPORT, its premier revenue management and fee billing solution. Tracking and calculating complex asset management, FX, transaction and performance fees, the solution offers complete visibility of billing operations.
Eze Investment Suite features a set of fully integrated hedge fund investment software that streamlines the investment lifecycle.
Eze Portfolio Management & Accounting provides the tools to produce accurate financial reports, reconcile portfolio data, and calculate real-time net asset value and P&L. Automated middle and back-office workflows alongside portfolio accounting and reporting provides flexible transaction management and position records.
Integrating Eze Portfolio Management & Accounting with Eze Investor Accounting allows further automation of complex allocation scenarios, generation of comprehensive investor statements and monthly performance reports to investors, partners, private equity and other shareholders.
Eze OMS (order management system) streamlines the entire investment process from idea generation to settlement across all asset classes. It holds advanced functionality to support portfolio analytics, modelling, trading, compliance, risk, and operations.
Eze Eclipse is a cloud investment solution to support the entire investment process in a single unified platform through a secure web browser interface.
FundSuite is a hedge fund administration platform providing fund accounting, portfolio accounting and investor servicing. All major fund structures and asset classes are included across more than 30 domiciles with multiple accounting and tax methods maintained for a single fund.
It maintains multiple valuation types including start-of-day, end-of-day and intra-day for middle office investment view. For detailed accounting analysis users can view trade and cash management, confirmation processing, position keeping, real time P&L, investment accounting, cash flow forecasting and corporate actions processing.
FundSuite can integrate with Temenos’ InvestmentManager, a front office solution for enhanced portfolio management and decision support. It gives portfolio managers control, enabling faster and easier tracking of the investment process. It provides sophisticated portfolio modelling, performance and attribution, risk and exposure reporting and scenario analysis. It maintains comprehensive asset class coverage for all fund types including fixed income, equity, currency overlay, asset allocation and liquidity.