Hedge Fund and Asset Management organisations face many business challenges as they compete to attract funds and generate outstanding returns. Together with absolute return and risk management capability, operational excellence has become the minimum benchmark for today's investors.
Many buy-side firms, particularly Hedge Funds, begin life with a small operations team supplemented with various levels of outsourced operational services. As the business grows, the management may find that both internal & external headcount - and therefore cost - must dramatically increase in order to maintain control.
This can, in part, be explained by greater operational complexity, higher transaction volumes, an explosion in asset-classes and the expanding number of relationships with prime brokers, administrators and industry utilities.
However, the switched-on Operations Manager knows that with the right business processes and technology support, they can provide a scalable operation, delivering better service, improved control and preventing or even reversing an escalation in costs.