Hedge Fund Articles


Hedge Fund Platforms

There has been a half dozen articles in the last year (2008) about private hedge fund platforms being setup or launched by firms such as the Man Group. There are really two types of hedge fund platforms being discussed. One allows hedge funds to trade almost any type of security through one portal and the other is the attempt to offer a selection of hedge fund managers with daily liquidity through a online portal for hedge fund investors.

A recent survey showed that over half of participating hedge funds expected a multi-asset class trading platform to be available within 2 years. I’m sure it will be sooner than that. There is a lot of money to be skimmed within a multi-asset class platform and many hedge funds would pay a premium for more anonymity and speed in trading across assets within one account.

I wouldn’t be surprised if HFN, HedgeCo or Eureka was already investing in figuring out how to create some sort of limited use hedge fund platform aimed to be used by individual hedge fund investors. The demand is there for whoever can release this first and start moving up the learning curve on making it work with a diverse range of hedge fund managers who are large enough to handle more frequent investments and redemptions from investors.

Richard Wilson is a hedge fund consultant, founder of the Hedge Fund Group (HFG) and runs the Hedge Fund Consultants Blog.

About Richard C. Wilson

Richard Wilson is a hedge fund consultant, founder of the Hedge Fund Group (HFG) and runs the Hedge Fund Consultant Blog.
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