AWS for Hedge Funds

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 in 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, the 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 an 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 maximize the benefit offered by cloud infrastructure providers like AWS, for hedge funds.

3 Quickfire Benefits of AWS for Hedge Funds and Financial Services

Here’s a quick overview of the public cloud benefits for financial services and hedge funds:

Grid Computing
Similarly to financial services firms, hedge funds can utilize AWS to expand on-premises grids to the public cloud. As an alternative, they can build cloud-native grids. The objective here is to right-size compute for factors such as risk and stress testing, trading strategy development, and portfolio management. The result is gaining the adaptability to regulatory changes. Other crucial benefits are getting more precise risk insights, quick responses to market events, and so on.

What is Grid Computing?

ML (Machine Learning)
When utilizing AWS for a hedge fund business, Machine Learning can be a huge component to drive things forward. AWS includes various machine learning (ML) services, which focus on digital transformation. The result is improving algorithmic models, portfolio management, and data analysis.

ML in Trading

Modernizing Legacy Systems with Agility and Scale
Public cloud services such as AWS, help hedge funds, and financial services modernize their legacy systems (and applications), as they wade through the dynamic market. With the tools and services offered within the AWS suite, these companies can accomplish attain better operational flexibility, while decreasing cost substantially.

Refactoring Legacy Applications

If those qualities are what you look for in your IT systems, get in touch.

Chart your own cloud adoption strategy and roadmap by discovering more valuable benefits of the public cloud.