As we look forward to 2014, we can expect that the hedge fund and investment management industry will continue to evolve and experience change as in years past. As more and more new funds launch, the competition for investors will increase and firms will be hard-pressed to live up to the successes of the top performing funds in the industry.
Earlier this week, we gathered several panels of experts in Boston to share their insights into the hedge fund landscape for startups in 2014 and the tips and advice for firms looking to compete in the changing marketplace. Following is a brief recap of the event.
Building a Hedge Fund is Like Building Any Successful Business
When starting a new firm, it’s critical to think about all aspects or forming a new business. Yes, your investment strategy is important, but if the foundation of your business is not critically thought out, it will wreak havoc for your firm. Following are a few areas you shouldn’t overlook as you go through the launch process.
Categorized under: Business Continuity Planning Cloud Computing Hedge Fund Due Diligence Hedge Fund Marketing Hedge Fund Operations Hedge Fund Regulation Infrastructure Launching A Hedge Fund Outsourcing Privacy Compliance Security Trends We're Seeing
You may have heard of it – the newest social media app that’s sweeping the 18-25 year old demographic – Snapchat. But what is it, and how could the technology behind it affect the business world?
Snapchat is a photo messaging application in which users can take photos or record short videos on their smartphones, then add text or drawing and send them to select contacts. When sending the content, users have the ability to set a time limit for how long the recipients can view it (up to 10 seconds), after which the photo or video will disappear from the recipient's device.
Here’s a recent Snapchat ad that depicts how the app is used:
Big changes are coming in the form of European Union data protection mandates. In January 2012, the European Commission announced a proposal to reform the current European Union's data protection framework, currently known as the 1995 EU Data Protection Directive, to better protect the personal data of EU citizens and update the current legislation to fit in with the 21st century requirements and rapid evolution of technology (including the prevalence of social networking and smartphones).
The EU proposal will give individuals more control over their data while also serving to promote the importance of data protection in a globalised world. The European Commission expects the rules will go into effect two years after they have been adopted by the member countries - officially around 2014 or 2015.
While some of the current proposals will undoubtedly be amended over the course of this lengthy process, let’s look at some of the practical steps companies should be considering now.
Yesterday, we hosted a webinar, “Going Social: What Investment Firms Need to Know about Social Media Compliance” along with Global Relay, an Eze Castle Integration partner and provider of enterprise message archiving and monitoring services. Global Relay's vice president of sales, Bryan Young, and our own vice president of marketing, Mary Beth Hamilton, discussed a range of topics including the changing SEC guidance on social media, compliance requirements for hedge funds and key components of instituting a social media policy at an investment management firm. Read on for a recap of the event, or watch the full replay now.
Last week, we hosted a webinar with eSentire on best practices for managing security risks. eSentire is the leading managed security service vendor protecting 25% of the global hedge fund market by AuM. During the webinar, the company's director of marketing, Mark Sangster, and our own vice president of client technology, Steve Schoener, explored topics including the scope of cyber threats, the anatomy of a cyber attack, continuous security monitoring and security policies and procedures for hedge funds to consider. Read on for a full recap of the information covered during the event.
Last week, we hosted a webinar covering AIFMD’s impact on US based hedge funds. The event featured Bill Prew, Founder of INDOS Financial Limited, and provided a high level overview of the changes that AIFMD will potentially bring to the alternative investment industry. Prew specifically focused on how US based managers will be impacted by this legislation. Read on for a summary of the main topics covered during the event, including an overview of AIFMD and the considerations and upcoming changes for US managers.
About the Expert
Bill Prew is the founder of INDOS Financial Limited. Before founding INDOS, he was the chief operating officer at James Caird Asset Management, a hedge fund with offices in London and New York. He has also served in various senior roles at Barclays Global Investors and PricewaterhouseCoopers. Following a summary of the information presented by Mr. Prew during our recent webinar.
Public cloud tools and free file sharing services are wholly owned and managed by third-party providers. Because infrastructure costs are spread across all users who are employing the service, each individual client is able to operate at a low cost. Public cloud tools are typically larger in scale than private enterprise clouds, which provide users with seamless, on-demand scalability.
These factors may seem to support the belief that public clouds and free file sharing services would suffice for a business’s basic infrastructure and file sharing needs. However, upon closer examination, it is clear that there are a number of areas in which these tools fall drastically short of meeting the crucial business needs of investment management firms.
Earlier this week, we looked at the Financial Services Authority’s (FSA) requirements for mobile voice recording, which comes into effect November 14. In today’s blog post, we look further into the PS10/17 requirements as well as the hot topics discussed at our recent hedge fund technology seminar in London, focusing on due diligence, mobile voice recording and disaster recovery. Let’s have a look at the hot topics discussed by our panel of experts at our recent seminar:
Will investors give less focus to infrastructure in the future? Will the due diligence load lighten?
There is no sign that due diligence will lighten. In fact, more focus, especially with more institutional money hitting the FOFs, to ensure all risks are in the strategy and not the infrastructure. Remember most conduit investors’ “alpha” is in the quality of their due diligence process so expect to see further tightening. Growth has been exponential with little feedback to managers so it is extremely important to get strong service providers who can let you know the latest requirements.
According to the Privacy Rights Clearinghouse, more than 100 million data records of U.S. residents have been exposed due to security breaches in the last five (5) years. In order for an investment management firm or hedge fund to correctly control and protect its data, you must first have a thorough understanding of what exactly you are storing in both print and electronic documents. Secondly, you must have data loss prevention technology in place to protect the information.
Data Mapping is one method that will help you understand what information is being stored within your infrastructure. Data Mapping involves searching your entire organization to determine what personal information is stored and where. Once the data is found, maintaining your organization’s data map is very important. This will help ensure that the personal information remains secure.
After you understand where your data resides, you will need the proper technology in place to protect it. Data loss prevention (DLP) technology is often one piece of the puzzle. DLP technology, such as GTB Technology’s eDiscovery product, can be used to monitor and protect data at rest, in motion and on the endpoints through deep content inspection and the constant monitoring of transactions occurring across the network
In response to the implementation of MA 201 CMR 17 on March 1, 2010, Eze Castle Integration held a recent webinar to assist investment firms in developing and maintaining a thorough Privacy Compliance system. Among the essential practices in preventing and properly addressing security breaches, our speakers addressed Data Mapping, The Privacy Compliance Life Cycle, and Security Requirements and Solutions. But before getting into the technology safeguards, we look at the legal requirements of 201 CMR 17.
The creation of Chapters 93H & 93I work to direct OCABR in promulgating regulations, stimulating breach notifications and the destruction of documents containing personal information (PI). According to OCABR, the vast majority of breaches occur with data in transit and on PDAs. Among those breaches, 97% were not encrypted data.
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- data loss prevention
- disaster recovery
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- hedge fund due diligence
- hedge fund marketing
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- hedge fund regulation
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- launching a hedge fund
- privacy compliance
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