Hedge Fund Trends and Challenges 2014, Part Two: Achieving Institutional Credibility
Report Summary
Hedge Fund Trends and Challenges 2014, Part Two: Achieving Institutional Credibility
To achieve institutional credibility, hedge funds must first inspire investor confidence.
Boston, February 13, 2014 – The practice of portfolio management is constantly evolving, most recently toward greater transparency and accountability across the investment process. Institutional credibility—the idea of a firm's operational stability existing beyond reproach in investors' eyes—is the buzzword driving hedge funds' operational efficiency, regulatory requirements, risk management, and investment decision-making priorities. As a result, the technological infrastructure supporting firms' ultimate investment outcome has moved to the forefront. But what technology choices inspire investor confidence?
Based on 40 summer 2013 Aite Group interviews with senior executives or managers at Tier-1 and Tier-2 hedge funds, this report explores the concept of institutional credibility as a driver of hedge funds' priorities. It also sheds light on current infrastructure, outsourcing, and technology spending trends. It is the second in a two-part series on hedge funds' investment management operations—find the first here.
This 20-page Impact Note contains 21 figures. Clients of Aite Group's Institutional Securities & Investments service can download this report.