Responding to growing data needs
BarclayHedge: Best Index Provider – Savvy investors are considering non-bond alternative investments to provide portfolios with an element of diversification and offer protection during major market sell-offs. As they look to substitute parts of their fixed income holdings with hedge fund and managed futures, the demand for data on these assets has been on the rise. The volume and accuracy of these information requirements have also been evolving. This progress has buoyed firms like BarclayHedge, a division of Backstop Solutions Group, whose purpose is to help clients solve data and information-related problems.
“Allocator expertise, as well as the methodologies used in the fund selection process, continue to become more sophisticated. This in turn leads to growing demands for additional data,” outlines Sol Waksman, founder and president of BarclayHedge.
The firm has been receptive to these changes. Its hedge fund and managed futures databases currently populate approximately 285 different data fields for each fund. “We provide our data subscribers with our most current updates at least twice per month; subscribers can also receive real-time data updates upon request 24/7. At each month-end, 95% of all of the funds in our databases have been brought up to date,” Waksman notes.
Coverage is one of BarclayHedge’s clients key concerns and along with providing up-to-date reporting on a sizeable portion of the hedge fund universe, subscribers also want the firm to provide them with the necessary information on the funds they are already interested in.
Waksman remarks: “The BarclayHedge database currently follows approximately 6,900 up-to-date funds. In addition, we also maintain a Graveyard database of 22,500 funds that have stopped reporting. We must be doing something right because a large portion of our subscribers stay with us for a decade or longer; some have been with us for more than 20 years.”
He explains the need for accurate data is also increasing, as the industry witnesses improved quantitative and qualitative measures of fund performance: “Typically, BarclayHedge adds approximately 125 funds to its databases each month. In our fund addition process, the data in each field for every newly added fund must be checked for accuracy.
“To ensure our data is as accurate as humanly possible, we require that as new funds are added, the fund data must be approved by three different experts at our firm. This is done before the fund is activated for distribution. Upon approval, the fund manager is notified, asked to review the information and requested to contact us if any changes are required.”
BarclayHedge has several initiatives it is planning to launch in 2021. Waksman comments: “We are working on adding more than a dozen new indices, 15 new hedge fund categories, new technology to facilitate data distribution to clients and utilising technology to assist in the process of adding new funds to our databases.
“Our business objectives for the year ahead also include a series of technological upgrades to increase the speed that data gets to customers. We would like to make it easier for them to locate and attain the information they need. In addition, we are constantly working on implementing new data fields for clients to utilise and the coming year will be no exception. We also pledge to continue improving on our existing data fields, as well as our indices and fund categories.”
For more information about BarclayHedge data subscriptions, visit www.barclayhedge.com/hedgeweek.
President & Founder, BarclayHedge