Eze Castle Integration Releases Third Annual Global Hedge Fund Technology Benchmark Study
BOSTON, December 10, 2013 – Eze Castle Integration, Inc., a leading provider of strategic IT solutions and private cloud services to hedge funds and alternative investment firms, today released its 2013 Global Technology Benchmark Study, which provides insight into front, middle and back office technology choices at buy-side firms. Based on data collected from 538 firms located in the U.S., U.K. and Asia, respondents revealed their preferred technology solutions in a range of categories including market data, portfolio accounting, order management, archiving, mobile technology and more.
In its third year, the survey results give new and existing investment firms a glimpse into their peer companies to better identify and evaluate the top technology systems and service providers available to them. The complete report is available here and in this recorded webinar.
Eze Castle Integration asked survey participants to detail their use of front, middle and back office technologies. Key data points include:
- Portfolio accounting: Fifty-four percent of respondents are using an Advent Software product for portfolio accounting. Respondents also use SunGard VPM, Tradar, Linedata and in-house or proprietary systems.
- Market data and analytics: Bloomberg dominates the market with 92 percent of firms using this platform for market data services and 82 percent using Bloomberg for market analytics.
- Research and document management: The need for research management systems (RMS) continues to grow, however, the survey showed moderate adoption of third-party solutions. The majority (55 percent) of respondents said they are not currently using a formal RMS tool.
- Order management: Consistent with 2012 findings, Eze Software Group’s Eze OMS continues to be the market leader for order management capabilities, followed by Bloomberg’s Asset and Investment Manager (AIM), Advent’s Moxy and RediPlus EMS.
- Message archiving: Global Relay is used by the majority of respondent (82 percent) and increasing attention is being placed on archiving of social media interactions.
- Mobile devices: Although BlackBerry remains the top choice of 92 percent of respondents, the adoption rate of Apple devices has risen steadily year over year from 10 percent in 2011, to 30 percent in 2012 to today’s figure of 42 percent.
Additional areas covered in the benchmark study include outsourced fund administration, risk management tools and customer relationship management software.
“As the global leader in hedge fund IT, Eze Castle Integration is committed to educating the alternative investment market about the various technologies available to effectively and efficiently run their business,” said Bob Guilbert, managing director of Eze Castle Integration. “With the insight from our annual benchmark survey, hedge fund managers are empowered to select technologies and service providers that will best support their companies.”Study demographics
Of the 538 buy-side firms that responded, 31 percent have AUM less than $100 million, 30 percent have AUM between $101 million and $500 million, and 39 percent have more than $500 million in assets. Other demographic information includes:
- Sixty percent of respondents were hedge funds, followed by 13 percent asset/investment managers, 8 percent private equity firms and 5 percent fund of hedge funds. Other respondents included family offices, advisory firms, broker dealers, venture capital firm sand private equity firms.
- Eighty-four percent of respondents are based in the U.S., 12 percent are U.K.-based and 4 percent are located in Asia.
- Sixty-three percent of firms operate from a single office location and 45 percent use equity (long/short) as their investment strategy.
About Eze Castle Integration
Eze Castle Integration is the leading provider of IT solutions and private cloud services to more than 650 alternative investment firms worldwide, including more than 100 firms with $1 billion or more in assets under management. The company’s products and services include Private Cloud Services, Technology Consulting, Outsourced IT Support, Project & Technology Management, Professional Services, Telecommunications, Business Continuity Planning and Disaster Recovery, Archiving, Storage, Colocation and Internet Service. Eze Castle Integration is headquartered in Boston and has offices in Chicago, Dallas, Hong Kong, London, Los Angeles, Minneapolis, New York, San Francisco, Singapore and Stamford.