Features

Hedge Fund Technology & TradingWhen it comes to analytic and workflow solutions for investment professionals, PerTrac is the undisputed 800-pound gorilla of the asset management industry. The firm boasts more than 2,000 clients in 50 countries, including institutional investors, family offices, private banks, service providers and money managers. 

By Hung Tran -- As assets under management dwindle and performance fees fall, hedge funds are increasingly looking for ways to cut costs. But choosing whether or not to outsource certain operations—especially those that have traditionally been done in-house, such as risk management—is a big decision. Managers must not only look at the potential cost savings, but must also consider the quality, reliability and security of their vendors. Despite the caveats, hedge funds are increasingly taking the leap.

Bernard MadoffBy Hung Tran & Jonathan Shazar -- Bernard Madoff has gone up the river, unlikely to ever return. But the specter of his $65 billion Ponzi scheme continues to hang over the alternative investments industry.

For many investors, especially those of the all-important institutional variety, the only way to combat Madoff’s dark cloud is to shine a bright light on what have long been the more secretive corners of the industry. One-page monthly statements from hedge fund and private equity managers are no longer enough; these clients are demanding transparency, due diligence and risk management previously anathema to many of the industry.

By Irene Aldridge -- High-frequency trading has grown exponentially in the past several years, and, according to the FINalternatives 2009 Technology and High-Frequency Trading Survey, that growth is here to stay.

A whopping 90% of respondents think that HFT has a bright future. In comparison, only half believe that the investment management industry has favorable prospects, and only 42% have a positive outlook when it comes to the U.S. economy.

By Aleksey Matiychenko and Alexander Makeyenkov -- Risk management is in vogue these days. The crisis of 2007-2008 has in many ways been blamed on the failure of risk managers to predict the stress that we have all now lived through. With global markets rebounding and hedge funds posting positive results, the discussions about improving risk management policies and systems are taking place at many hedge funds.

Last year’s major shakeout in the hedge fund industry—with roughly 20% of all funds closing up shop—has radically altered its technology and risk management landscape. Those funds that did survive and the new ones just entering the market are scrambling to equip their operations with the best platforms to appease both their investors and the regulators tightening the screws on them.

By John Brunjes and Genna Garver, Bracewell & Giuliani -- President Obama’s plan to modernize financial regulation and supervision reflects a complex and consequential policy that directly impacts private investment funds and their managers.  Most significantly, all managers of hedge funds and other private pools of capital, including private equity and venture capital funds, whose assets under management exceed some "modest threshold," would be required to register with the SEC. 

Christophe LandonChristophe Landon isn’t an investment professional, rather, he is a connoisseur of fine violins. That is what makes him the most unlikely of portfolio managers, yet also the most qualified to do what he does best…purchase fine musical instruments, a unique asset class that has produced steady, positive returns for decades.

Gregory ArnoldWith the White House and a Democratic Congress on board, the U.S. is likely to adopt a carbon emissions reduction policy this year. That probability is creating enormous interest in the future of carbon trading, and investing in it.

CleanTech Brief’s Jonathan Shazar recently spoke with Gregory Arnold, managing partner of San Diego-based CE2 Capital Partners, about carbon cap-and-trade programs, the current legislative and regulatory environment, and the future of carbon investing.

Quality Capital Management is making key changes to its management team and product line in an attempt to drum up interest from U.S. investors.

The firm last month launched a U.S.-domiciled version of its flagship Global Diversified Program, which has been trading since December 1995 and returned 59.51% last year. The new vehicle, the Otus Fund USA, will feed into its flagship offering.