MFA Blog

Research Shows Hedge Funds Increasing Oversight Automation

Posted on July 2, 2014

A recent research report from Milestone Group found that asset managers, including hedge funds, are opting to increase automation at their funds, prepping for anticipated regulatory changes.  The report, covered by Hedgeco.net, found that “40% of North American asset managers feel that their current operation is unprepared to meet anticipated regulatory changes.”

“Managers need automation, as it reduces error.” Joe Holman, CEO of $30 billion global hedge fund group Orangefield Columbus, said to Hedgeco.net.  The report also noted that 61% of asset managers plan to increase oversight and said they would not wait for new regulations before strengthening the oversight of their funds.

The report also highlighted that outsourcing operations and oversight is gaining traction.  “Outsourcing operations has allowed managers to improve automation, enabling them to get better information faster, which…means they have better information and more time to contemplate their next portfolio move,” said Holman.

Read more about the report online from Hedgeco.net.