So we all know hedge funds and investment firms don’t want their important information drifting around free file sharing services like Dropbox. Heck, even Dropbox’s Chief Operating Officer says they still have to convince businesses that “the enterprise features that [they’ve] built satisfy [business] security requirements and [business] needs.1”
With security threats multiplying exponentially, satisfying security requirements isn't enough - vendors need to be one step ahead. That’s why for secure file sharing Eze Castle Integration offers the Varonis' DatAnywhere product as a standard feature within our Eze Managed Suite. Varonis' DatAnywhere offers users seamless and secure collaboration and file sharing across devices.
Beyond security, Varonis DatAnywhere is easy to use. Users receive the same drag-n-drop experience as shared network drives or a cloud sync folder, which means no need for training on complex user interfaces and collaboration workflows. Additionally, data is automatically backed up and version controlled.
We created a video training series for our Eze Managed Suite clients on using DatAdvantage. While I can’t share all the videos (unless you are an Eze client!), here’s the intro video to give you a taste of this great feature.
Hedge fund outsourcing is not a new trend, as buy-side firms have long dispersed the responsibility of many functions to third-party service providers more adept and accomplished at said functions. Technology, for example, is an area where many firms choose to leverage outsourced providers to manage complete or partial infrastructures, support projects or supplement on-site IT staffs. The benefits to outsourcing are numerous, but the true measure of a successful service provider relationship comes when an investment firm’s level of risk in using that provider is low.
Risks are everywhere, particularly in today’s cyber-focused environment. But the risk a hedge fund undertakes when outsourcing a function of its business to a third-party is enormous. Not only is the firm relinquishing control to an outside company, it also takes on the added burden of managing that company, in addition to its own.
It’s one thing to put faith in your service providers to do their jobs effectively. It’s another to ignore your own firm’s responsibility to manage that third party as a means of protecting your own firm. Successfully managing risk associated with third-party service provider relationships is a full-time job, especially for financial services firms working with dozens of various parties. Here are a few tips to help your firm properly manage third-party service provider risk:
We take great pride in helping solve our clients' IT needs and highlighting recent success stories. Our client Wexford Capital LP is one such example who selected the Eze Private Cloud platform for its fully managed, enterprise-grade environment. Wexford Capital gravitated away from its on-premise IT infrastructure and towards the Eze Private Cloud for its multifaceted suite of services and measurable benefits, such as, cost optimization and increased business agility.
Dante Domenichelli, Chief Operating Officer at Wexford Capital, said, “Eze Castle Integration delivers the comprehensive services and expert, reliable support we had been searching for in an IT provider. Transitioning to the Eze Private Cloud has enabled seamless business expansion and improved our operational efficiencies while providing assurances of performance and security.
In Part 1 of the SEC's recent cybersecurity guidance update, the regulatory body highlighted the need for cyber risk assessments across multiple areas of a registered firm's organization. Continuing to address how firms should prepare for security incidents before they occur, Part 2 of the SEC's guidance update focuses on how hedge funds and registered investment advisers should prevent, detect and respond to security incidents.
Take a look at the latest installment of our video series or scroll down to read a brief recap.
Categorized under: Security Launching A Hedge Fund Cloud Computing Disaster Recovery Hedge Fund Due Diligence Hedge Fund Operations Hedge Fund Regulation Infrastructure Communications Outsourcing Business Continuity Planning Trends We're Seeing Videos And Infographics
When considering going cloud, numerous quantifiable benefits come to mind, predominantly: cost savings, simplified management, ease of access, increased efficiencies and improved computing capabilities. Beyond these commonly denoted advantages is an inherent benefit that tends to be unremarked in the case of cloud adoption.
The green, or eco-friendly, aspect of the cloud is one of the most overlooked, multifaceted advantages of cloud computing. Let’s examine the green proposition for the cloud, an untapped solution for hedge funds and investment firms.
HFMWeek catches up with Eze Castle Integration’s managing director, Bob Guilbert, to discuss why so many funds are opting for cloud solutions and how the industry can work together to tackle cyber crime.
HFMWeek (HFM): What are the security implications of moving to a cloud system?
Bob Guilbert (BG): Firms looking to move to the cloud need to consider which provider is right for them and can service their operational and security needs. A firm needs to consider the security protocols in their office as well as in the cloud and work with someone that covers both sides, including the virtual and physical elements. It’s also vital that firms understand the ‘response and remedy’ services that cloud providers offer, the quality of which can vary hugely between public and private clouds.
If you missed our 'Starting a Hedge Fund' webinar last week, you missed a lot. Luckily, our webinar replay is available here, and we're now onto Part Two of our recap. If you missed Part One - which focused on the structural and formation basics of starting a new hedge fund - click here. In Part Two, we're recapping what our very own Managing Director Vinod Paul covered, specifically around IT infrastructure decision-making, cybersecurity protections and common technology mistakes.
2015 Technology Priorities
Before looking at the specific technology infrastructure components emerging managers should consider before and during the launch phase, let's first cover some large-scale IT priorities for startups in 2015. We've identified three major priorities:
Selecting the right service providers. Whether it's outsourcing IT, administration or another critical function, it's imperative for startups (and successful hedge funds in general) to conduct proper due diligence and forge partnerships with providers that offer flexibility and accountability.
Understanding your firm's vulnerabilities and exposures. Security, security, security. It's the most critical area of focus for hedge funds in 2015. Firms should understand what risks could affect their businesses and the safeguards in place to mitigate those risks.
Employing an infrastructure your firm can grow with. You're a startup, yes. But you can't afford to act like a startup, at least when it comes to your technology. Selecting an infrastructure platform and provider that can grow with your firm and support you 2, 5, 10 years down the road is critical to your success, and will save you money and headaches in the long run.
Categorized under: Launching A Hedge Fund Cloud Computing Disaster Recovery Security Hedge Fund Due Diligence Hedge Fund Operations Hedge Fund Regulation Infrastructure Communications Outsourcing Business Continuity Planning Trends We're Seeing Videos And Infographics
Yesterday, we hosted a hedge fund launch webinar called “A Checklist for Starting a Hedge Fund in 2015,” which focused on structure and strategy considerations for hedge fund startups as well as focus areas for your technology infrastructure and cybersecurity systems. Marni Pankin, partner at Marcum LLP, and Vinod Paul, managing director at Eze Castle Integration, shared their expert knowledge on what they consider to be the top priorities for hedge fund startups in 2015.
Pankin started with a checklist of her own, including what an emerging manager should look for when launching a new hedge fund. Below is a brief summary of her checklist and be sure to read our second article, "Starting a Hedge Fund: Your IT and Cybersecurity Checklist" here.
Categorized under: Launching A Hedge Fund Cloud Computing Disaster Recovery Security Hedge Fund Due Diligence Hedge Fund Operations Hedge Fund Regulation Infrastructure Communications Outsourcing Business Continuity Planning Trends We're Seeing
This article first appeared on Opalesque as part of a four-part series on cybersecurity.
Ruane, Cunniff and Goldfarb, Inc. used to have their own IT infrastructure. Todd Ruoff, Executive Vice President in charge of trading, operations and technology, was responsible for its maintenance. Then he started looking at outsourced providers a couple of years ago, as he wanted a better disaster recovery solution, the equipment was ageing and the firm was planning an office relocation. His firm is now using Eze Castle Integration’s Private Cloud, the ECINet private Internet service and Eze Castle’s Vault backup and recovery service. He tells Opalesque how that works for him.
Ruane, Cunniff and Goldfarb is an investment advisor and broker-dealer in the US, which manages an $8bn mutual fund, a '40 Act company called the Sequoia fund. The firm has around $5bn managed in hedge funds, and another $15bn in separately managed accounts run for HNWIs and institutions.
"As a broker, we need the ability to trade," Todd Ruoff says. "We are a long-term investor who invests in large, concentrated positions, focused on a few securities. It’s important that we have access to real-time market data, which we get from various sources, as well as access to our trading systems for execution and order management. As an advisor, we need to be able to report for our clients, as well as internal portfolio management teams. All of our research is done in-house, through an organic internal process, whereby our analysts work on the subject companies, which are publicly traded equities. We invest primarily in common stocks in the US, Europe and Asia."
As your hedge fund’s IT Manager or Chief Technology Officer, you may be tasked with evaluating and directing the strategic technology initiatives at your firm. Unfortunately, this doesn’t always mean that you have the final say on how and when your firm makes technology-related decisions. That responsibility, in many cases, falls to the Chief Operating Officer or Chief Financial Officer, and in many cases, that individual does not have a technology background. It’s up to you, then, to ensure you provide your CXOs with the right information to make an informed decision about your firm’s technology foundation.
We asked our own CFO, Chris Holden, to talk through some of the primary considerations C-level execs will weigh when evaluating a migration to the cloud. Read a recap of his thoughts here or scroll down to listen to the full replay of our conversation.
Cloud Migration Drivers: Is Cost Always the Primary Factor?
According to Holden, the best way to justify a new technology to non-technical senior management is to provide a sound and logical cost comparison. And when it comes to the cloud, yes – cost is a big factor and a serious selling point.