It’s never been more critical for hedge funds to achieve institutional credibility in order to attract investors, deliver superior returns and comply with increased regulation. This presupposes a firms’ ability to inspire the confidence of investors, prospects and regulators in their operational stability, integrity and transparency. Increasingly, hedge fund software is helping to create the robust infrastructure they need to achieve this higher operational state. This, in turns, enables them to win new mandates, control risk and manage complex investment strategies that often use OTC derivatives.
Hedge fund software challenges: operational efficiency, effective risk management and informed investment decisions
One challenge for hedge funds is to increase operational efficiency. Robust portfolio management software and hedge fund accounting and derivatives solutions can help them better manage their costs in the post-financial crisis era of reduced budgets and declining assets under management.
As another result of the crisis, firms must enhance risk management in order to manage a growing range of regulatory requirements, from the Alternative Investment Fund Managers Directive (AIFMD) in Europe to Form PF of the Dodd-Frank Act in the U.S. Hedge fund software enables them to not only effectively report to external regulators but also comply with the hedge fund industry’s own new codes of practice for risk reporting: the Open Protocol Enabling Risk Aggregation (OPERA) standards.
Furthermore, in the challenging, complex quest to generate alpha returns, manage the globalization of the industry and improve investment performance, hedge funds need holistic, accurate data and robust portfolio management software and hedge fund accounting solutions to improve decision-making on behalf of their investors.
By addressing all three challenges, and achieving operational stability across the full investment life cycle, today’s hedge funds can gain the institutional credibility they need to manage complexity, maintain profitability and achieve ongoing growth.
SunGard’s hedge fund software solutions
SunGard provides a suite of hedge fund software and derivatives solutions to help you:
- Achieve institutional credibility by increasing operational efficiency, enhancing risk management and improving decision-making
- Gain a detailed, intraday view of risk and performance across portfolios
- Automate intricate post-trade workflows associated with fixed income and derivatives
- Handle the accounting of complex portfolios and fund structures
- Outsource the management of technology to a trusted partner
Find out more about SunGard’s Hedge360 – an integrated application suite that supports the full investment life cycle across front, middle- and back-office processes for hedge funds and alternative asset management that can be hosted or the proven integrated components hosted or installed.