Operations

October 6, 2017

Key Elements of a Comprehensive Hedge Fund Disaster Recovery Plan

Hedge fund managers reasonably tend to focus the better part of their time and resources on fund performance, strategy execution, attracting and retaining top personnel, and developing robust business infrastructure, but increasingly, disaster recovery is—and should be—absorbing a growing share of hedge fund managers’ top of mind business concerns. According to the Identity Theft Resource Center, as of the first week of October, this year has seen over 1,000 data breaches across nearly all Read More »

August 11, 2017

Preserving A Hedge Fund’s Business and Legacy: The Keys to A Robust Succession Plan

Developing a thriving hedge fund business, as distinguished from a traditional corporation, involves fostering a network of interpersonal connections because investors often decide to allocate to one manager over another at least in part due to the strength of a personal connection. In some cases, a manager’s reputation attracts investors as much as the potential returns its funds can produce. Despite this relationship-centered model, investors are increasingly requiring managers, especially s Read More »

January 19, 2017

How Hedge Fund Managers Can Mitigate Risks Associated with Allowing Employees to Use Personal Mobile Devices for Work Purposes (Part Two of Two)

These days, one can’t hold a continuous conversation with anyone employed without some interruption from a smartphone or tablet—yours or theirs. As more employees are conducting business away from their desks, mobile devices are essentially an appendage for today’s workforce. Employees check emails, access investment research and remotely communicate with colleagues and clients, all day and all night according to some reports. It’s impossible to know anymore whether that ding you hear or Read More »

January 12, 2017

How Hedge Fund Managers Can Mitigate Risks Associated with Allowing Employees to Use Personal Mobile Devices for Work (Part One of Two)

Whether they’re on the latest smartphone or tablet, Android, Blackberry or iPhone, mobile devices enable employees to be productive from anywhere, at any time. And employees want to use mobile devices while working on the go—to read work emails, view and share files, access the company intranet, check investment research and communicate with clients and colleagues. For the better part of the last two decades, and when mobile devices were rare, businesses provided company-owned mobile devices Read More »

December 8, 2016

Key Considerations for Hedge Fund Managers Working with Outside Sales Consultants (Part Two of Two)

Fundraising continues to be one of the greatest challenges facing hedge fund managers today. Recent industry reports show that at least one in five North American-based institutional investors intend to decrease their allocations to hedge funds in the coming year, a rate which for the first time in 10 years outpaces more optimistic investors—by a factor of two. Competition for capital is fierce, and hedge fund managers whose core expertise is managing portfolios for investors, not necessarily Read More »

December 1, 2016

Key Considerations for Hedge Fund Managers Working with Outside Sales Consultants (Part One of Two)

Hedge funds increasingly face headwinds in nearly all aspects of their operations—regulatory scrutiny, investment returns, shrinking profit margins, evolving business practices—but fundraising is perhaps the most challenging. With a growing chorus of institutional investors questioning the benefit of their existing hedge fund allocations, new investors, and the fresh capital they bring, are increasingly harder to come by. The difficult environment has also forced many hedge funds to evaluate Read More »

October 27, 2016

Controlling the Fallout: Best Practices When Terminating Employees While Minimizing Legal, Regulatory and Headline Risks (Part Two of Two)

According to Pensions and Investments’ seventh annual hedge fund survey, the majority of hedge fund respondents experienced some degree of asset decline in the year ending June 30. The reversal in fortunes from just last year is striking: This year, 59% of hedge fund managers reported a decline in assets managed worldwide, while last year 70% of managers reported asset growth. Consequently, for three consecutive quarters, through June 30, the number of hedge fund liquidations has outpaced laun Read More »

October 20, 2016

Controlling the Fallout: Best Practices When Terminating Employees While Minimizing Legal, Regulatory and Headline Risks (Part One of Two)

For most of their existence—certainly in the past 10 years—hedge funds were in growth mode. AUM was growing, and with it, the number of funds and employees staffing those funds and managing assets. The tide, however, seems to have turned; data compiled from regulatory filings and industry sources indicates that AUM and the number of funds peaked in or around the fourth quarter of 2015. (For more on trends in hedge fund growth, see “SEC Report Provides Updates to Agency’s Use of Form PF D Read More »

September 15, 2016

Tailoring a Human Resources Strategy to Your Hedge Fund’s Needs (Part Two of Two)

Human resources tends not to receive the attention that it rightfully should, and yet the price of a hedge fund not having a bespoke HR strategy in place is only increasing. Firms are battling for talent, while simultaneously becoming more selective in hiring practices and prone to firing employees, even for infractions that aren’t performance-based. For some firms, a general market malaise has resulted in the elimination of entire departments, or layoffs. For still other firms, any lapse in m Read More »

September 8, 2016

Tailoring a Human Resources Strategy to Your Hedge Fund’s Needs (Part One of Two)

The allocation of a hedge fund’s human resources depends upon a wide range of factors. Larger hedge funds are well-situated to employ a full operational staff, from deep compliance and legal benches to human capital and finance teams. They are also able to—and need to based on the complexity of their staffing—have an in-house human resources function. Given the relatively small size of the average hedge fund, however, a full-bore HR function usually isn’t necessary, and for a substantial Read More »