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Hedge Funds Ramp Up Oversight Automation In Face Of New Regulations

shutterstock_162794306New York (HedgeCo.Net) – According to research from Milestone Group, 40 percent of North American asset managers feel that their current operation is unprepared to meet anticipated regulatory changes, driving a desire to increase automation.

“Managers need automation, as it reduces error.” Joe Holman, CEO of $30 billion global hedge fund administrator Orangefield Columbus, said. “However, the risk of implementing a program exceeds the tolerance of the manager as there are so many software programs that falsely promise accuracy. Why take a chance on unknown software when you can easily outsource to proven service providers that provide automation? Outsourcing allows managers to focus on the fund, while service providers stay on top of the regulatory changes.”

As firms become increasingly automated, 61 percent of asset managers plan to ramp up oversight and claim they would not wait for new regulations to arrive before strengthening oversight.

“Operations and investment management are two separate business lines.”  Holman said in an exclusive interview with HedgeCo. “More and more investment managers today are recognizing this fact and opting to turn operations over professionals who specialize in this line of work. From the largest PE fund in the world to the smallest HF, outsourcing operations is the new “best practices”.

“Outsourcing operations has allowed managers to improve automation, enabling them to get better information faster, which provides means they have better information and more time to contemplate their next portfolio move.” Holman concluded.

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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