02.13.2014

Hedge Funds Face Operational Hurdles

02.13.2014
Terry Flanagan

For hedge fund startups, competition for allocations, regulation continuing, and investors seeking more transparency and reporting, has created an uphill battle to successfully launch a new fund.

“For these start-ups, there are many decisions to make which cannot be overlooked, including the technology infrastructure and controls that will support the fund’s strategy at launch and twelve to twenty-four months down the line as the business matures,” said Branden Jones, global head of marketing at Liquid Holdings.

Liquid Holdings’ portfolio and risk simulation program “was purpose-built for start-ups — whether they were Volcker’d out from a bank or are leaving a more established firm — to test drive their strategy while they are registering a new fund or in the last rounds of raising capital,” said Jones.

Liquid Holdings’ cloud-based order, execution, and risk management platform (OERMS) enables fund managers to simulate trading, portfolio management, risk management, and reporting task against their portfolio(s) in a single, real-time environment. Upon completion of the program, managers leave with a two-month trial account to continue testing their strategy.

“Aside from our capabilities, the lynch pin is our platform takes advantage of all the benefits of SAAS and cloud computing,” said Jones. “Managers currently enrolled in the program require end-to-end capabilities that are faster, better, and cheaper than what they relied on in the past, while requiring little to no resources to support.”

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