data-url="http://www.xignite.com/market-data/top-5-hedge-fund-technology-challenges-all-blown-away-by-the-cloud/"

data-via="xignite" data-text="Top 5 Hedge Fund Technology

Challenges All Blown Away by the Cloud"

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width="150" height="200" />The year 2011 proved to be yet

another lackluster year for the hedge fund industry. There are

any number of possible explanations for why the average hedge

fund lost 4.8 per cent including increased volatility, lack of

focus, crowded strategies, and regulation. Whatever the precise

reason for this continued poor performance, it is likely that the

hedge fund industry has only a limited amount of time to get back

to the glory years of consistently providing absolute returns,

before it risks a significant outflow of assets under

management.

The adoption of an on-demand

market data cloud instantly benefits the hedge fund industry

because it allows firms to address the top 5 hedge fund

technology challenges.

This post is the first

in a multi-part series that describes the top 5 hedge fund

technology challenges all blown away by the market data cloud. In

subsequent posts we will examine each of the five hedge fund

technology challenges in greater detail.

Hedge Fund Technology Challenge #1

Focusing on alpha generation, not market data

management

Now more than ever

hedge fund managers need to be laser-focused on their core

responsibility of alpha generation. Distractions such as

reporting, IT management, and just the general business of

running a hedge fund all play a role in reducing

the hedge fund industry's focus on the

investment management process. With an on-demand market data

cloud all the headaches involved with building and maintaining a

market data infrastructure are removed.

Hedge

Fund Technology Challenge #2

Expanding the

universe of alpha generation possibilities

Hedge funds compete in a world where alpha generation

opportunities have become more fleeting and dispersed than ever

before. In this new world firms require a market data solution

that allows them to quickly analyze a broad set of opportunities

wherever they may be. The market data cloud model expands the

universe of alpha generation possibilities by putting vast arrays

of global and multi-asset class market data right at the

fingertips of hedge fund managers.

Hedge Fund

Technology Challenge #3

Bringing instant

transparency to regulatory and investor

reporting

The job of a hedge fund

manager has become infinitely more complex with demands for

improved transparency coming from seemingly every direction. For

many firms this has meant onerous reporting requirements, made

even more difficult by inflexible systems, and an inability to

quickly access accurate market data. An on-demand market data

solution, that offers comprehensive coverage of real-time,

historical, and reference data, allows firms to instantly enrich

their regulatory and investor reporting.

Hedge Fund Technology Challenge #4

Getting new funds up and running in record

time

The health of the industry

depends on relatively low barriers to entry for new hedge fund

entrants, because as we know, size kills alpha. A major barrier

for new funds is the sourcing of baseline market

data, and the requirement to build out a market data

infrastructure. Adoption of the market data cloud allows new

startup hedge funds to focus on other more important tasks so

that they can launch sooner, and begin to establish their track

records.

Hedge Fund Technology Challenge

#5

Add market data quickly to Excel modeling

and reporting

Let's face it most

of the hedge fund industry's important activities such as

modeling and reporting are still done in Microsoft Excel. An

on-demand solution means no more time wasted wrestling with

market data feeds or files. The market data cloud allows firms to

quickly add the market data they need, in the format of their

choice, for all their Excel modeling and reporting.

The next blog in this series will be "Hedge

Fund Technology Challenge #1 - Focusing on alpha

generation, not market data management".

To learn

more about the Xignite Market Data Cloud for Hedge Funds email us

at sales@xignite.com or call

1.866.XML.SOAP.