In a new report, ‘Challenges and Innovation in the Hedge Fund Industry’, Celent examines the structural challenges that the hedge fund industry has been faced with following the credit crunch, as well as a practical view on how the industry responds. Institutional investors account for an increasing percentage of the client base of hedge funds and pension funds have accelerated their push into the industry. To meet the requirements of these investors, hedge funds have developed a much more mature business model. Asset concentration among the largest hedge funds largely reflects the changes in capital sources. ‘Smart money’ – endowments or high net worth individuals – are gravitating toward high-profile boutique funds that have the potential to generate outsized returns. New money from pension funds is gravitating towards the large, established players with more developed administration and compliance departments. At the same time, the competition for alpha has been heating up. Circumventing the commoditisation trap is one of the biggest challenges for the industry. To this end, hedge funds have become a visible and active participant in the lending business, developed more hybrid capacities and have increasingly sought to build high-capacity/low-latency smart-order routing infrastructures that will allow them to access liquidity faster, reduce market impact, increase speed and reduce trading costs.
The annual BNP Paribas Cash Management University kicked off on Thursday morning with treasury professionals congregating in Paris from across Europe.
APIs may be a solution to MT940 challenges, says Karen Fagan, treasury operation manager, for British television company, ITV.
Kicking off the first day of the Singapore Fintech Festival, issues with cryptocurrencies were addressed by MIT media labs director, Joi Ito, and panels of technology leaders discussed how they’re using data analytics.
Sibos 2017 day two highlights: Brexit and banking, and why ‘data is the new oil’ in financial services
How nation first politics can impact global financial organisations It’s clear that data and regulation are the two key topics that are ... read more