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Why Start-Up Fund Managers and Private Equity Firms Need a Website

By Frank Serebrin, InCapital Marketing (guest contributor),
Wednesday, November 11th, 2015

This post was contributed by Frank Serebrin, president and founder of InCapital Marketing.

If you don’t have a website, you don’t exist.
That’s the takeaway from…well, I can’t cite a study, but it’s my opinion.

Less than a generation ago, few businesses would consider not having their phone number published in the yellow pages. (Remember them?) Today, search engines have replaced phone books as the place most go for research and information. How can your potential new clients search you if you don’t have a website or social media presence?
Yet fifty-five percent of small businesses don't have a website, according to a 2013 survey of more than 3,800 small businesses conducted by Google. That's a slight improvement from the year before, when 58 percent said they didn't have a website.
You may think of yourself as a start-up hedge fund manager, or a Registered Investment Advisor, or a real estate private equity manager. And you’re still also a small business, too, at least as defined by the SBA.
Here are ten reasons why you may not have a site yet, and what you may do to correct the oversight:

1. I Don't Have the Time

Is this you? "I'm too busy trading…I’m on the road making sales calls…my partners and I have full time corporate jobs, too.” With all the demands on your time, a website can help sell your story while you build relationships and multi-task.

2. There’s No Money in the Budget

Is it that you don't have the money, or you haven’t figured out what your marketing budget should be? As a start up, your focus might understandably be on the legal costs of a private placement memorandum, and administrative, accounting, technology, trading, office space, and sales expenses.
How much capital are you looking to raise, and it what period of time? Is it $25 million? $50 million? $250 million or more? And you want to raise that from professional and sophisticated investors without the credibility of a website?

Categorized under: Launching A Hedge Fund  Hedge Fund Operations  Communications  Trends We're Seeing 

Hedge Fund Marketing Essentials: Materials, Strategies and a CRM

By Mary Beth Hamilton,
Thursday, November 5th, 2015

Effective hedge fund marketing strategies and materials allow firms to capitalize on new opportunities and stand-out from the crowd. However, crafting a unique story that reaches and motivates investors is challenging.

Today I moderated a webinar with speakers from Ovis Creative and Ledgex Systems looking at the current marketing landscape, marketing pitchbook best practices and the role of a hedge fund CRM platform.

Below you can watch the whole webinar or download the slides HERE.

To pique your interest, here is expert advice from Ovis Creative’s Creative Director, Lauren Colonna, about hedge fund pitch book best practices:

  • Don’t go overboard on the content. Create a cohesive but succinct story (total of 20 to 30 pages)

  • Focus on key pages with greatest opportunity for impact

  • Avoid overused terms; remember if a concept or phrase sounds generic to you... they are even more so to an investor who has heard the same theme over 1000 times

  • Maintain a consistent style, voice and tone (reflective of your pitch); Employ perfect grammar, succinctness,  clarity and a consistent message

  • Use bulleted form rather than full text paragraphs; Consider a call out/side bar to enforce a key takeawayShe also covers what’s in a pitchbook, the role of a website and much more.

Categorized under: Hedge Fund Operations  Launching A Hedge Fund  Hedge Fund Insiders  Hedge Fund Due Diligence  Communications  Trends We're Seeing  Videos And Infographics 

Five Myths about Voice over IP (VoIP): Hedge Funds Take Notice

By Mary Beth Hamilton,
Thursday, October 22nd, 2015

Our Eze Voice (think financial services grade VoIP) is now available to firms across the United States and United Kingdom. In honor of this global availability, we want to debunk some common myths associated with VoIP for financial services forms. 

Voice over IP has come a long way especially in the business world, but many financial services firms still have hesitations about making the switch. Check out these five common myths about Voice over IP.

MYTH 1: Poor Call Quality – Everyone will know I’m on VoIP

Call quality is a key concern and can be impacted by a number of items including the network, available bandwidth and even the type of phones being used. However, a well-designed business-caliber VoIP system can deliver quality of service comparable to an in-house phone system. In business settings, where calls are made over private IP connections, Quality of Service (QoS) can be monitored and guaranteed because the entire IP connection is controlled by the party making the call.

When evaluating VoIP services, it is important to inquire about the underlying network and how voice traffic is prioritized and routed. You want a provider that has full control over network traffic and can ensure high quality of service. For added confidence, ask to speak with existing VoIP customers (over the phone!) to hear about their experiences first-hand.

MYTH 2: VoIP is Unreliable – I’ll Experience Downtime

A natural extension of the call quality concern is the reliability concern. While consumer-grade VoIP services work over the Internet to deliver low cost services, Business-grade VoIP services often use the Internet as a backup and have private IP point-to-point lines for primary connections. If Internet is the primary transit, be sure you are working with a VoIP provider who manages the entire network and has control over traffic prioritization. In most cases you want to ensure voice traffic takes precedent over data or travels on a different network.   

Categorized under: Communications  Launching A Hedge Fund  Cloud Computing  Hedge Fund Operations  Infrastructure  Real Estate 

Launching a Hedge Fund in the EU: Key Technology Factors to Consider

By Kulvinder Gill ,
Thursday, October 1st, 2015

This article first appeared in HFMWeek's Special Report: How to Start a Hedge Fund in the EU 2015.

HFMWeek catches up with Eze Castle Integration’s executive director, Dean Hill, to discuss the importance of selecting the right business service providers and the key technology factors new funds must consider when starting out in the EU.Dean Hill, Exec Director, Eze Castle Integration

HFMWeek (HFM): Are you seeing a healthy market for new hedge fund launches in the EU?
Dean Hill (DH): Yes. I think going into 2016 we will see an increase in terms of the amount of new hedge fund launches across the UK and European markets. Not only are these launches coming more frequently, but their size, structure and launch AuM is greater than anything we have seen in the last two-to-three years. It is certainly on the uptake.

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

Starting a Hedge Fund: What kind of Internet/Voice connectivity will I need?

By Mary Beth Hamilton,
Thursday, September 24th, 2015

Among the many technology decisions your firm will face during the launch phase is selecting the appropriate telecommunications needs to power daily operations. High-speed Internet and voice connectivity are necessary to access market data feeds, communicate with investors and facilitate trade orders and other investment decisions. To help you make an informed decision about your voice and Internet needs, we’ve provided a few suggestions below.

Short on time? Click here to read our complete manager’s guide to establishing a hedge fund.

The Internet, of course, is an essential vehicle for collecting and distributing market data, as well as communicating with your clients, investors and partners via email. You’ll likely find four Internet access choices, depending on availability in your area. There are benefits and drawbacks to each, as described below.

Categorized under: Communications  Launching A Hedge Fund  Cloud Computing  Disaster Recovery  Security  Infrastructure  Outsourcing  Trends We're Seeing 

SEC Issues Update on 2015 Cybersecurity Examination Initiative

By Mary Beth Hamilton,
Thursday, September 17th, 2015

On September 15, 2015, the SEC’s Office of Compliance Inspections and Examinations (OCIE) issued a Risk Alert providing additional guidance on key focus areas for round two of its cybersecurity examinations. Specifically OCIE stated exams will “involve more testing to assess implementation of firm procedures and controls.” The Commission intends to focus on the following areas as a means to collect information on cybersecurity-related controls and assess the controls in place at firms:

Governance and Risk Assessment: According to the Alert, OCIE may evaluate the governance and risk assessment process for areas including, but not limited to, access control, employee training, third-party/vendor management and IT systems management. Examiners also expect to see that assessments and associated policies are specific to a firm’s business.

Access Rights and Controls: OCIE warns that the lack of basic access controls and user management policies can result in unauthorized access to systems and information. Examiners may request details on how a firm manages user rights and what supporting technologies are in place.  

Categorized under: Security  Launching A Hedge Fund  Cloud Computing  Hedge Fund Regulation 

Ride Through the Security Layers Encasing the Eze Managed Suite

By Mary Beth Hamilton,
Tuesday, September 1st, 2015

Eze Video Debut!

Ever wonder about the layers of security encasing our Eze Managed Suite solution? We thought you had. That's why we created this video, which outlines not only the security protections but also the extensive services available to investment firms and hedge funds that move to our premier cloud solution.

Watch, learn and then contact us for more details.

Categorized under: Cloud Computing  Launching A Hedge Fund  Disaster Recovery  Security  Trends We're Seeing  Videos And Infographics 

3 Real Estate Trends Facing New York City Hedge Funds

By Ben Friedland, Michael Movshovich and Taylor Scheinman, CBRE,
Thursday, August 20th, 2015

The following article is part of our Hedge Fund Insiders Article Series and was contributed by CBRE Group, Inc. Read more articles from the Series HERE.

As a team focused exclusively on advising hedge funds on their strategic real estate planning, we have observed several trends continuing to proliferate in the market. Below are three real estate-related issues relevant to all hedge funds.

Increasing Construction Costs

Construction costs for office interiors throughout New York City are rapidly increasing and firms that built space 5–10 years ago will find that overall expenditures for the same quality installation have increased 30–40% based on benchmark construction cost data across NYC. Although benchmarking numbers are not available specifically for hedge fund construction, high-end design details like custom millwork and architectural metal and glass are often a significant part of the design and are seeing the most rapid appreciation in cost, driving even more significant increases specific to hedge funds. Additionally, these premium and other critical trades such as HVAC and electrical are in high demand and can cause scheduling delays, pushing associated costs higher than ever.

It is crucial for hedge funds to have an owner’s rep / project manager advisor involved to ensure projects are appropriately budgeted from the initial due diligence phase, assessed on a project-by-project basis throughout the site selection process, and effectively implemented during the design and construction of the selected space.   

Categorized under: Hedge Fund Insiders  Launching A Hedge Fund  Hedge Fund Operations  Infrastructure  Project Management  Real Estate  Trends We're Seeing 

Affordable Care Act (ACA) Changes Set to Have Significant Impact for New York Finance Firms

By Steve Edney, TriNet,
Tuesday, August 18th, 2015

The following article is part of our Hedge Fund Insiders Article Series and was contributed by TriNet. Read more articles from the Series HERE.

Steve-EdneyBeginning January 1, 2016 every U.S. firm with 51-100 employees will be migrated to the “small group market” for healthcare benefits, as part of Affordable Care Act (ACA) mandated changes. Currently, in many states the small group market encompasses firms with 50 or fewer employees. But for policies that renew in 2016, this market will be expanded to include companies with up to 100 full-time employees.

Companies with 51-100 employees, who previously enjoyed the “economies of scale” benefits associated with being in the large group health care market, will become part of the small group market as of their first renewal on or after January 1, 2016.  While this change will happen across the U.S., we believe its impact will be very significant in New York State.

What mid-size businesses can expect from ACA changes:

  • Healthcare premiums, on average, will increase – potentially significantly – and the access to a wide-array of rich benefit plans these companies previously enjoyed is likely to be reduced. This is because New York State’s small group healthcare market is “community-rated,” which means the demographics (for example, average age of employees) at a firm have no impact on small group market healthcare pricing. New York State currently prohibits insurance rate variations based on the demographic characteristics of the firm. This is in stark contrast to the rest of the country, where firms are priced based on their employee “census”- thus taking into account their demographic characteristics. We believe this will result, on average, in significantly higher healthcare premiums – especially if the firm has a relatively young average age composition, as so many New York financial firms do.

  • “Small group” market plans will be “canned,” meaning you will now have to select your benefits from a group of plans that the carrier offers – and plans cannot be modified.  This will likely cause firms with 51-100 employees to lose some of the previous benefits they were able to offer employees. As a result, this change is likely to affect deductibles, out-of-network coverage, advanced infertility treatments and lower limits on certain services.

  • Companies that have 51-100 employees and a relatively young demographic composition will likely be hit with significant healthcare premium increases, as the small group community rates will be much higher than what they currently pay.  By my calculations, some groups could see premiums increase as high as 50 percent for plans similar to what they offer today.

Categorized under: Hedge Fund Insiders  Launching A Hedge Fund  Hedge Fund Operations  Hedge Fund Regulation  Trends We're Seeing 

Cybersecurity Risks and Implications for Investment Advisers

By Shelley Rosensweig, Haynes and Boone, LLP,
Tuesday, August 11th, 2015

The following article is part of our Hedge Fund Insiders Article Series and was contributed by Haynes and Boone, LLP. Read more articles from the Series HERE.

Cybersecurity risks pose an increasingly significant threat to investment advisers. In early 2015, the Securities and Exchange Commission’s (the “SEC”) Office of Compliance Inspections and Examinations (“OCIE”) identified its annual adviser examination priorities which reflect certain practices perceived to present heightened risk to investors and/or the integrity of US capital markets, one of which was cybersecurity compliance and controls. In April 2015, the SEC’s division of investment management (the “Division”) issued guidance (the “Guidance”) [1] reinforcing cybersecurity as a priority for advisers and suggesting that advisers implement cybersecurity risk assessment plans, response strategies, and written policies and procedures. Included below are measures advisers should consider (some of which are directly from the Guidance) when addressing cybersecurity risks relating to their operations:Hedge Fund, Cyber security risks

Risk Assessment. Advisers should conduct assessments of: (1) the nature, sensitivity and location of information that it collects, processes and/or stores and the technology systems it uses; (2) internal and external cybersecurity threats to and vulnerabilities of the adviser’s information and technology systems; (3) security controls and processes currently in place; (4) the impact should its information or technology systems become compromised; and (5) the effectiveness of the governance structure for the management of cybersecurity risk.

Categorized under: Hedge Fund Insiders  Launching A Hedge Fund  Security  Hedge Fund Due Diligence  Hedge Fund Operations  Hedge Fund Regulation  Trends We're Seeing 

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