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Hedge Funds Plug Further Into Hi-Tech
Faced with potentially increased exposure and regulation, more and more hedge funds are turning to technology to ease their pain, according to Datamonitor.
Faced with potentially increased exposure and regulation, more and more hedge funds are turning to technology to ease their pain, according to Datamonitor. In a recent report, the London-based market analyst predicted that HF investment in information technology will hit $3.3 billion by 2009, a tantalizing prospect for IT vendors. “The evolution of the hedge fund sector is somewhat inevitable,” says Nii Barnor, author of the study and a Datamonitor financial services technology analyst. “In addition, service providers need to raise the bar by offering enhanced reporting functionality and superior connectivity to clients.” Barnor notes, “The availability of real-time data to enhance the investment decision-making process, direct market access and algorithms are all key areas hedge funds are beginning to focus on as they search for new trading opportunities.” What’s more, new regulation is bound to appear on a hedge fund’s door step one of these days, despite the demise of the recent HF registration rule. Finally, according to the report, hedge funds have been plugging further into hi-tech. Prime brokers and fund administrators servicing them have had to up their tech capabilities to compete for the lucrative hedge fund business.