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Betting Against the Odds and Neglecting Risk:The True Cost of a Data Breach

By Katie Sloane,
Tuesday, December 9th, 2014

When it comes to the cost of a successful data breach, the ensuing ramifications are not limited to monetary loss. A firm’s confidential information, customer trust and overall operations are all at risk of being compromised. To protect their data and systems from cyber-attacks and breaches, it is critical that firms become Hackeras secure as possible.

Raising the Bar

Over the past year, we have witnessed more firms strengthening their security measures in an effort to comply with industry regulations as well as the SEC cybersecurity expectations. Additionally, we’ve seen an increase in frequency and sophistication of both data theft and cybercrime. A study by Risk Based Security revealed that within the first nine months of 2014 there were 1,922 data breaches reported and 904 million records exposed. Four of those incidents have made the Top Ten All time Breach List and three hacking incidents combined were accountable for nearly sixty percent of exposed records. Today, most hedge funds are aware of the severe negative effects a security breach can cause; however, gaining this knowledge may have been a tough lesson to learn.

Categorized under: Security  Disaster Recovery  Hedge Fund Due Diligence  Hedge Fund Operations  Hedge Fund Regulation  Business Continuity Planning  Software  Trends We're Seeing 



Back to Basics: 10 Cloud Technology Terms to Know

By Charlene Haddad,
Tuesday, December 2nd, 2014

As technology changes, it can become overwhelming to keep up with. That’s why we’ve decided to take a step back in today’s blog article to go over some of the basic vocabulary involved in cloud computing. Here are 10 terms to get you started:
 
Cloud Computing
Services or applications that are hosted in a web-based repository known as the “cloud”; the service is often hosted by a third-party provider who then provides access to that service to users on an on-demand basis via a network connection. This alleviates that firm from having to purchase and maintain costly infrastructure in-house.

Data Center
A facility used to house computer systems and associated components, such as telecommunications and storage systems; typically includes redundant or backup power supplies, redundant communications connections, environmental controls and security features. The Update Institute classifies data centers into four tiers based on the percentage of availability and uptime.

Categorized under: Cloud Computing  Launching A Hedge Fund  Hedge Fund Due Diligence 



Crisis Communications Tips for Business Continuity

By Matt Donahue,
Tuesday, November 18th, 2014

How important is day to day communications within your company/firm? If an incident or disaster occurred today, how would your organization respond? Do you have a team or group designated to develop messages for both internal (employees, vendors, third parties, building management) and external (public, employee families, media) contacts? Have they practiced? When the pressure is on, is your organization prepared if a disaster or event suddenly puts your firm under the microscope with an onslaught of internal/external calls, questions, requests, emails, social media messages or media requests?Communication

Crises and disasters continue to happen across borders and industries. Let’s not forget some of the more recent large scale disasters such as Hurricane Katrina, Typhoon Haiyan, Deepwater Horizon, Fukushima, Hurricane Sandy, and, of course, the ongoing major data breaches, just to name a few. That list doesn’t include more common events that may not make the major news networks such as utility failures, office fires, and systems outages. Smaller events like previously mentioned can cause minimal to significant disruption to business operations. This is why developing and practicing a variety of communications is vital in an organization’s response to an incident.

Some of these events can be predicted in advance, giving an organization time to make decisions, analyze other organization’s responses, consider impacts, and communicate a message or action. Sometimes events are sudden, such as an earthquake or active shooter. These events require immediate actions, decisions, and communications to be made. In either case - an immediate or delayed event - communication is critical to demonstrating proper leadership and providing employees with proper direction, especially if the event is centered specifically on your organization.

Categorized under: Business Continuity Planning  Disaster Recovery  Security  Hedge Fund Due Diligence  Hedge Fund Operations  Communications  Trends We're Seeing 



2014 Benchmark Study Results: Top Hedge Fund Applications Revealed

By Katie Sloane,
Thursday, November 13th, 2014

The results from our Global Hedge Fund Technology and Operations Benchmark Study are in and here is a snapshot of the 2014 findings. You can find the complete report here. We surveyed 279 buy-side firms across the United States, United Kingdom and Asia in order to discover their front, middle, and back office technology and application preferences.Hedge Funds by Type

Respondent Profile[Hedge Funds by Type]All survey respondents fell into the following categories within the financial industry: hedge fund (58%), asset/investment manager (13%), private equity firm (3%), fund of fund (3%), and family office (3%). Additionally, 13 percent fell into an ‘other’ category, which included financial firm types such as venture capital, advisory, fund management, quant and wealth management.  

Firms surveyed fell into three asset groups: thirty-three percent (33%) reported their assets under management (AUM) as less than $100 million; twenty-eight percent (28%) fell between $101 and $500 million; and the majority (39%) reported over $500 million AUM. 

In regards to investment strategy, long/short equity continues to dominate as the most favorable with 50 percent (50%) of respondents reporting this to be their primary investment strategy.  Additional preferred strategies include credit (8%), fixed income (6%), emerging markets (5%), event driven (4%), and distressed debt (3%). Twenty-four percent (24%) of firms fell into an “Other” category that included a wide variety of investment strategies such as commodities, derivatives, merger arbitrage, relative value, securities, global macro, and long only. In 2014, the top primes employed by firms are Goldman Sachs, Morgan Stanley, JP Morgan, Credit Suisse and UBS (same as 2013 results).

Categorized under: Hedge Fund Operations  Launching A Hedge Fund  Cloud Computing  Hedge Fund Due Diligence  Communications  Outsourcing  Software  Trends We're Seeing 



Sneak Peek: 2014 Hedge Fund Benchmark Study Results

By Kaleigh Alessandro,
Tuesday, November 11th, 2014

In it's fourth year running, our Global Hedge Fund Technology Benchmark Study reveals the top technology systems and applications used by investment management firms around the world. And while we aren't due to officially release the results until tomorrow - register for our webinar to hear them live - we thought we'd share a little sneak peek in the form of an infographic.

Take a look below and discover how your hedge fund and investment management firm peers are using technology to power their firm operations.

Categorized under: Hedge Fund Due Diligence  Launching A Hedge Fund  Cloud Computing  Security  Hedge Fund Operations  Hedge Fund Regulation  Infrastructure  Communications  Outsourcing  Software  Trends We're Seeing  Videos And Infographics 



Hedge Fund Cybersecurity: Preparing Your Defensive Team

By Katie Sloane,
Thursday, November 6th, 2014

When it comes to cybersecurity defenses, this isn’t a fantasy league. The threats are real and growing in sophistication for the hedge fund and alternative investment industry. In today’s blog, we will discuss how to prepare your firm’s defense for external attacks and internal breaches.Hedge Fund Cybersecurity

Cybercrime works like a defensive team that studies their opponents and plays and can make midgame adjustments. The only true way to thwart an incident is to establish a layered security program to safeguard against attacks and vulnerabilities of all kinds. Football teams share a similar composition, as there are defensive tackles and ends, cornerback and safety roles. You need to ensure your infrastructure is highly secure and cannot be penetrated by external attackers or easily manipulated by internal threats. 

Categorized under: Security  Hedge Fund Due Diligence  Hedge Fund Operations  Hedge Fund Regulation  Infrastructure  Business Continuity Planning  Software 



Tech Tips for Starting a Hedge Fund

By Kaleigh Alessandro,
Tuesday, November 4th, 2014

Outsourced ResponsibilityLast week, we co-hosted another exciting Hedge Fund Startup event with KPMG in New York and had a great turnout of fund managers looking to learn more about everything from legal and tax implications to technology must-haves and capital raising strategies.
 
Since technology is clearly our forte, we wanted to share some of the key takeaways from our “Achieving Institutional-Grade IT” panel, featuring speakers from Evercore Partners, Bank of America Merrill Lynch and, of course, Eze Castle Integration. Here are the highlights:

State of Emerging Manager Market

  • The hedge fund startup market is healthy, and investors’ appetite for emerging managers is strong

  • Investors are attracted to nimbler, hungrier nature of emerging managers. 

Key Priorities for Startups in 2014/2015

  • Select the right service providers to support your business.

  • Understand your firm’s vulnerabilities and exposures.

  • The operational due diligence process is changing, therefore firms need to understand the protections they have in place to secure investor assets.

Categorized under: Launching A Hedge Fund  Cloud Computing  Security  Hedge Fund Due Diligence  Hedge Fund Operations  Hedge Fund Regulation  Infrastructure  Outsourcing  Trends We're Seeing 



Four Signs It's Time to Break up with Your IT Provider

By Kaleigh Alessandro,
Thursday, October 16th, 2014

Broken HeartIn any relationship, when things are good, they’re usually pretty good. And when things are bad, sometimes they are really bad. There may come a point when you need to evaluate whether you’re still a good fit together.
 
Just like with a romantic relationship, your firm’s connection to a service provider (especially an infrastructure/cloud provider you rely on daily) should be strong enough to withstand a few hiccups and healthy enough to warrant open communication at all times. In some cases, it might be clear that you’re in a good place and moving forward together, but sometimes there are sure signs it’s time to call it quits.
 
Here are a few of those signs:

1. Your provider’s service levels are not up to snuff.

Maybe you recently experienced a major service outage or find that you not-so-conveniently have to work around confusing and interrupting maintenance schedules during work hours. You’re constantly frustrated and don’t feel like you are receiving the level of support that was agreed to – both verbally and as part of your Service Level Agreement (SLA).

Your SLA should clearly indicate the uptime standard (e.g. 99.995% availability) as well as repercussions to any breaches in the contract (for example, service credits) and associated RPOs if disaster recovery is involved

Categorized under: Cloud Computing  Disaster Recovery  Security  Hedge Fund Due Diligence  Hedge Fund Operations  Help Desk  Infrastructure  Communications  Outsourcing  Trends We're Seeing 



51 Hedge Fund IT Due Diligence Questions You Can Expect From Investors

By Mary Beth Hamilton,
Thursday, October 9th, 2014

On our recent Hedge Fund Marketing and Due Diligence webinar we looked at how the hedge fund investor due diligence process is evolving especially in terms of scrutiny on technology processes and security safeguards. 

The reality is that investors have a greater understanding of technology, are asking more probing questions and care about the responses they receive.  We’ve even heard investors say that deficiencies in IT infrastructure and security contributed to the decisions to redeem from or not invest in a fund.

So at Eze Castle Integration we regularly assist our hedge fund clients in completing the IT portions of investor due diligence questionnaires. The wording of questions varies but here is a handy list of 51 common IT due diligence questions we see.

Organization

  1. Provide an organization chart for the Company, its affiliates and key personnel.

  2. Provide the physical address and general contact information for each of the Company’s office locations.

  3. Provide the name and contact information of the Company employee(s) assigned to the client’s account(s).

  4. Provide a list of compliance personnel, their roles and qualifications, the date of his/her appointment and position within the Company’s organizational structure.

Categorized under: Hedge Fund Due Diligence  Launching A Hedge Fund  Cloud Computing  Disaster Recovery  Security  Hedge Fund Operations  Trends We're Seeing 



Hedge Fund Marketing and Due Diligence: A Webinar Recap

By Charlene Haddad,
Tuesday, October 7th, 2014

Stand Out from the CloudAs more and more firms compete for investor attention and allocations across the financial services industry, differentiation becomes a critical consideration. And the promise of positive returns is not always enough to secure investments in today's competitive marketplace. Now more than ever, investment firms must push the boundaries in an effort to impress and satisfy new and existing investors and emerge as premier firms. Two ways in which firms can deliver on this are through marketing and technology.
 
Last week, Eze Castle collaborated with Meyler Capital, a hedge fund marketing firm, to deliver a webinar on Hedge Fund Marketing Tips to Impress Investors and Raise Capital. Scroll down to watch the full replay or continue reading our brief recap.

Categorized under: Launching A Hedge Fund  Hedge Fund Due Diligence  Hedge Fund Operations 



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