Can Emerging Hedge Fund Managers Use Technology to Satisfy Business Continuity Requirements and Mitigate Third-Party Risk?

Hedge fund firms are investing in sophisticated and robust infrastructures and information technology (IT) services to stay ahead of competition and drive growth in a changing marketplace.  However, challenges await, particularly for startup firms with budget restrictions, tight timelines and short resumes.  New launches in 2015 and beyond will have to raise their standards to ensure IT systems and technology support structures are in place to give firms an edge where perhaps other operational areas cannot.  In this guest article, Vinod Paul of Eze Castle Integration examines considerations for emerging hedge fund managers in establishing technology infrastructure – including components to ensure resiliency of the manager’s business – and discusses ways an emerging manager can avoid common startup pitfalls.  In a previously published companion article, Marni Pankin of Marcum provided a checklist for emerging managers to follow when launching a hedge fund in order to meet various operational, accounting, compliance and regulatory requirements.  For more on technology considerations for hedge fund managers, see “Aite Group Report Identifies the Building Blocks of Institutional Credibility for Hedge Fund Managers: Operational Efficiency, Robust Risk Management, Integrated Technology and More,” Hedge Fund Law Report, Vol. 6, No. 36 (Sep. 19, 2013).

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