The 'US Hedge Fund Services 2019' special report comprises 10 separate articles listed below, these can be read individually or as a sequence.
The market correction that ripped through Q4 2018 was perhaps a pre-cursor for increased volatility this year, and if that is the case, active fund managers – especially specialist sector-focused stock pickers and short specialists – could make substantial gains for their investors.
While hedge funds struggled in Q4, so did passive investments. Could higher volatility in 2019 help active stock pickers shine?
Much is written about the operational challenges that hedge fund managers face today but when it comes to data collection – ie reference data, pricing, portfolio valuations – and trade execution or standardised reporting, service providers and investors have to contend with plenty of pain points.
In 2018, there were over 1200 publicly disclosed security breaches globally with the number of exposed records more than doubling from 197.6 million in 2017 to 446.5 million last year* as reported by Fortune. The number and scale of attacks has been rising year on year for the past decade and with general data protection regulation (GDPR) now in force in Europe, the number of reported breaches is likely to continue rising.
Q&A with Frank Napolitani and Jaclyn Greco of EisnerAmper's Financial Services Practice
The amount of data is exponentially growing. A paper by IDC, Data Age 2025, said that 16.3 zettabytes of information was generated in 2017 (one zettabyte is 1 billion terabytes), and forecasted this amount would rise to as much as 163 zettabytes in 2025.
Despite the undoubted uptake in cloud platforms by global hedge funds over the last few years, with much written on the scalability and cost benefits, the perception remains that cloud usage invites data security risks. This is not market ignorance.
Robotic process automation is accelerating productivity within the financial sector. Much of the recent progress that’s been made innovating artificial intelligence (AI) technology toward greater efficiency has been driven by the significant resource investments of fund administrators, such as U.S. Bank Global Fund Services.
Fund administrators have, over the last decade, focused a lot of attention and marketing dollars to persuade clients to buy customised, premium value-add services, in a bid to stand out from the crowd. To some extent, this has been a period of seduction, driven in large part by the incredible sophistication and evolution of technology tools.
Q&A with Karl O’Reilly, Fund director at International Management Services Ltd (IMS)