Why Hedge Funds Go High-Tech
‘Investment’ and ‘returns’ are two words that can be immediately associated with the world of hedge funds – perhaps more so than ‘investment’ and ‘technology’, that is. But the latter is precisely what is happening in the buy-side market today – hedge funds, in particular, are starting to invest more in technology in order to create a robust operational framework and realize the highly-sought after goals of error-free, efficient, and real-time operational processes.
So is the age-old stereotype that the buy-side lags behind the rest of the securities industry in its attitude towards technology about to change? Perhaps so, and evidence is mounting as to the extent of this movement. There are several drivers behind this – including most notably the phenomenal growth in the number of hedge funds and the scale of their operations, regulatory and compliance pressures, the rising share of highly sophisticated financial derivatives in their overall product portfolio, and the development of specialised technology specifically tailored for the needs of hedge funds. -
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