Cloud infrastructure is ready for prime time – AWS for hedge funds is rapidly becoming “the new normal” no-brainer, providing an enabling technology platform to address many of the business challenges faced by managers.
Running a hedge fund has never been more challenging. To start with, markets have been very unpredictable. Central bank policies across the world have played a key role in driving (or arguably distorting) asset prices, not only in fixed income and currency markets but also other asset classes.
The competition has also evolved. The rise of the ETF industry has made it cheaper for investors to track benchmark indices, and even introduce some degree of model-based active management through intelligent beta finds. At the same time, an industry that historically has been unregulated is now coming under the watchful eye of financial watchdogs – triggering a corresponding increase in compliance costs for fund managers and operational burdens spanning a range of activities, from registration through to record keeping and reporting.
So with alpha discovery proving more difficult, pressure to justify fees coming from cheaper investment vehicles, and costs on the rise because of new compliance requirements – smarter and more agile use of technology is more critical than ever.
Sadly, many fund managers and vendors are still bogged down with legacy systems and solutions that are complex and inefficient to manage. They are under the illusion that owning and operating one’s own server and network infrastructure offers some form of advantage, when the opposite is in fact true.
What’s needed is a new approach; an agile way of solving fund manager problems using new technology architectures. That is why we founded Hentsū. Our vision is to deliver hedge fund technologies that are agile, secure, compliant, scalable, resilient and cost effective. Building solutions that maximise the benefit offered by cloud infrastructure providers like AWS, for hedge funds.
If those qualities are what you look for in your IT systems, get in touch.