Hedge Funds: Choose the Right Partners to Meet Investors’ Operational Due Diligence

October 21, 2020

By Todd Sloan

Over the last few years, our clients across the investment management community have seen a heightened focus on operational due diligence driven by a surge of institutional money into hedge funds. In addition, several fraud cases have caused significant losses for even the savviest investors. Regulators are also shining a bright light on hedge funds as they have gained popularity across both retail investors and pension plans. Having the right technology and third-party relationships in place is more important than ever before.

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reconciliation, Hedge Funds, investment operations, investment management, due diligence, operational due diligence, data aggregation, operational risk, back office

Why Intelligence Augmentation is the Buy-Side’s AI Answer to Solving Persistent Reconciliation Challenges

August 31, 2020

By Todd Sloan

Practical artificial intelligence (AI) use cases and applications in buy-side reconciliation and post-trade operations are prevalent, yet many have yielded uneven and questionable results. AI can go only so far to autonomously solve the operational problems investment management firms face. The solution? An intelligence augmentation (IA) approach to AI.

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Electra Blog Posts, Buy-Side Technology, Operations Management, Electra Information Systems, reconciliation, Hedge Funds, Investment Firms, Investment Managers, machine learning, buy-side, artificial intelligence, post-trade operations, intelligence augmentation

Why Investment Managers Should Stop Managing Reconciliation Processes in Departmental Silos - Now

September 04, 2019

By Todd Sloan

shutterstock_1068885818An investment manager’s post-trade operations environment generally evolves as the firm grows. Technology solutions are important for helping firms manage increased trade volumes, mitigate risk and lower costs. Operational efficiency is always the goal, but over time, siloed solutions used to manage a particular area of operations get in the way of reaching that goal due to the tendency to make solution choices according to organizational structures and processes already in place.

In hundreds of discussions with investment managers over the years, we’ve often discovered the existence of multiple reconciliation silos, little collaboration across teams, and limited visibility into the data needed to improve the situation. In order to find the best solution to the problem, first we must understand the full impact and significance of the problem on a firm’s business.

The Dangers of Operational and Reconciliation Silos

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Electra Blog Posts, Buy-Side Technology, Operations Management, Reconciliation Solution, Electra Information Systems, reconciliation, Hedge Funds, fund administrator, Data Reconciliation, SEC Compliance, SEC, Investment Firms, automation, Investment Managers

4 Reasons Why Hedge Funds Should Shadow Their Fund Administrator

April 30, 2019

by Todd Sloan

One of the most important responsibilities of the fund administrator is to calculate the fund net asset valuation (NAV). Before calculating the official NAV, the fund administrator must ensure the accuracy of the data by way of reconciling the investment manager’s data against that of the prime broker or custodian. Fund administrators are well-versed in the different ways that a NAV should be calculated and the need to agree with investment managers on the methodology to be used before posting an official NAV.

The question is, why does the investment manager need to reconcile the makeup and accuracy of their NAV if a service provider or fund administrator is already performing reconciliation? After speaking with several operations professionals across the hedge fund space, we identified four main reasons why an investment manager should shadow their service provider or fund administrator:

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Electra Blog Posts, Buy-Side Technology, Reconciliation Solution, Electra Information Systems, reconciliation, shadow accounting, Hedge Funds, NAV, fund administrator, Data Reconciliation

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