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HEDGE FUND TECHNOLOGY Front Office Page 2 Research and Analysis Page 4 Trade Execution and Management Page 8 Portfolio Management Middle Office Page 11 Data Management Page 13 Risk Management Page 15 Cash and Collateral Management Page 16 Securities Pricing and NAV Calculation Page 17 Investor Relations Page 18 Trade Reconciliation and Processing Back Office Page 19 Accounting Page 21 Compliance and Reporting Page 24 Administration Page 25 IT Security and Support HEDGE FUND ALERT: 5 Marine View Plaza, Suite 400, Hoboken NJ 07030. 201-659-1700 To start your FREE trial subscription, return to HFAlert.com and click on “Free Trial”. Or call 201-659-1700. You can also complete the Free Trial Coupon on the last page of this newsletter and fax it to 201-659-4141. Hedge Fund 2 ALERT HEDGE FUND TECHNOLOGY FRONT OFFICE: Research and Analysis FRONT OFFICE: Research and Analysis Vendor Product The Skinny AIM Software GAIN Corporate Actions DM Tracks various corporate events for companies in an investment portfolio, enabling aimsoftware.com the manager to react promptly to announcements. Austrian vendor founded in 1999. Arialytics Aria Aims to reduce the time it takes to identify, design and review trading algorithms. arialytics.com Created with new and emerging managers in mind. Allows users to quickly analyze big-data sets to identify patterns and predictors. Machine-learning component tweaks models in response to real-time activity. Rye, N.Y., vendor founded in 2010 by David Marra, previously a principal at Boston Consulting. Dataminr Dataminr Continually monitors and analyzes publicly available Twitter feeds for information dataminr.com about companies and investments. Provides customized real-time alerts. Serves 50-plus financial firms with a combined $500 billion of assets. New York vendor, founded in 2009 by three Yale graduates, has raised $50 million of venture capital. Deltix TimeBase, Software suite allows quantitative managers to aggregate and analyze vast sums deltixlab.com QuantOffice, of data, develop trading algorithms, back-test models and execute trades. QuantServer Customers can purchase components separately or in a bundle. Also offers a hosted version. Clients include Ananta Capital. Employee-owned company, based in Natick, Mass., was founded in 2005. EidoSearch EidoSearch Quantitative-investing software employs pattern recognition to analyze equity, eidosearch.com futures, foreign-exchange and global-macro instruments. Clients include Bridgewater and TIG Advisors. Chief executive Steven Zhang has worked with NASA and on the Human Genome Project. Former Thomson Financial chief executive Jeff Parker named chairman in 2013. Toronto company founded in 2009. eVestment Quantum Analytics, Web-based systems help funds of funds and other investors analyze hedge fund evestment.com Spectrum Analytics, performance and liquidity. Quantum Analytics is the most powerful and expensive of Spotlight Analytics the three versions, followed by Spectrum Analytics and Spotlight Analytics. Atlanta vendor, founded in 2000, has grown by acquiring companies including Fundspire, HedgeFund.net and PerTrac. FactSet Research Systems FactSet Entity Data Announced in February 2015 that it was acquiring Code Red, a Boston software firm factset.com Management that provides research-management products to institutional investors. FactSet’s technology matches data sources to identify links between entities, securities, people and funds. Norwalk, Conn., vendor, founded in 1978, is publicly traded company specializing in analytical applications for investment firms. Kensho Technologies Warren Online tool analyzes performance of various assets under multiple conditions via kensho.com plain-language queries. Cambridge, Mass., company founded in 2013 by a Harvard Ph.D and a former Google programmer. Secured $10 million of seed capital from, among others, Google Ventures and Devonshire, Fidelity’s private-investment arm. Ledgex Systems Ledgex Research Processes large amounts of research data to perform manager-selection and ledgex.com manager-monitoring functions. Designed for funds of funds, endowments, pensions and family offices. Boston vendor founded in 2008. To start your FREE trial subscription, return to HFAlert.com and click on “Free Trial”. Or call 201-659-1700. You can also complete the Free Trial Coupon on the last page of this newsletter and fax it to 201-659-4141. Hedge Fund 3 ALERT HEDGE FUND TECHNOLOGY FRONT OFFICE: Research and Analysis FRONT OFFICE: Research and Analysis Vendor Product The Skinny Lucena Research QuantDesk Online portal billed as easily accessible and affordable way for fund managers to lucenaresearch.com access quantitative tools including advanced pattern-recognition algorithms and big- data analysis. Product suite includes “price forecaster,” “portfolio optimizer” and “hedge finder” functions. In November 2014, augmented predictive models with consumer-travel data from AirSage. Atlanta-based Lucena co-founded by former F- 15 fighter pilot Tucker Balch, a Georgia Tech professor specializing in artificial intelligence and machine learning. Market Prophit Market Prophit Takes big-data approach to monitoring social media for clues to market sentiment. marketprophit.com Uses proprietary method to weigh bullish and bearish comments on Twitter. Also ranks posts based on the accuracy of past predictions. Firm based in New York. Markov Processes Stylus Pro Suite Software suite integrates in-house and third-party data to perform returns-based International analysis. Helps hedge funds develop leverage and short-position strategies, markovprocesses.com understand risk factors driving returns, separate alpha from beta and carry out other analytical tasks. Summit, N.J., business started in 1990 by Russians Michael Markov and Mik Kvitchko, who first developed software based on the analytical methods of Nobel Laureate William Sharpe. Mosaic Research Vendor Relationship Manager Gathers feedback and quantifies the value of a firm’s research vendors. New York Management company founded in 2010. mosaicrm.com QuantConnect QuantConnect Cloud-based system designed for startup and smaller quantitative managers. Allows quantconnect.com users to design and back-test trading programs, drawing computing power from hundreds of servers for fast results. Provides access to historical data on equity prices and foreign-exchange rates. New York vendor offers multi-tiered pricing based on size and scope of clients’ operations. Founders Jared Broad and Shari Rosen secured financing from angel investors in 2013. RavenPack RavenPack News Analytics, Offers two tools designed to harvest structured information from unstructured text ravenpack.com RavenPack Indicators published by leading news and social-media sources, with aim of delivering machine-readable data. Customizable for various applications, including event alerts and triggers. Vendor, with offices in London and New York, founded in 2003. Software AG Apama Real-Time Analytics Performs real-time analysis of multiple data streams to formulate trades in response softwareag.com to corporate events. Aimed at event-driven traders. Publicly traded German vendor focuses on big-data applications. To start your FREE trial subscription, return to HFAlert.com and click on “Free Trial”. Or call 201-659-1700. You can also complete the Free Trial Coupon on the last page of this newsletter and fax it to 201-659-4141. Hedge Fund 4 ALERT HEDGE FUND TECHNOLOGY FRONT OFFICE: Trade Execution and Management FRONT OFFICE: Trade Execution and Management Vendor Product The Skinny ACA NorthPoint Order Management System Integrates with most electronic-trading platforms using FIX protocol, offering broad acacompliancegroup.com coverage of asset classes including fixed-income instruments and swaps. Offers user-configurable, rules-based compliance tool that supports pre/post trade and ad hoc tests, alerts and audit trails. Seamlessly integrates with ACA NorthPoint’s portfolio-management system, and comes packaged with its Security Master and Price Master applications. Vendor known as NorthPoint Financial before being acquired by ACA Compliance in November 2014. Advent Software Moxy In July 2015, Advent was acquired by SS&C Technologies in a $2.6 billion deal advent.com creating a financial-technology powerhouse serving more than 10,000 clients. Advent’s installed or hosted system connects users to multiple trading partners, including dark pools, and performs a range of functions covering multiple asset types. Supports algorithmic trading of stocks and options, providing access to 250 algorithms from 25 brokers. Also available as front- to back-office system that includes Advent Rules Manager and Advent Portfolio Exchange. Apex Technologies Vector, Developed by firm best known as a fund administrator. Multi-asset order- apexfundservices.com Vision management system, Vector, syncs with portfolio-management system, Vision, which provides real-time position monitoring and reporting. Designed to work with Linedata’s execution-management system. In March 2014, Vision augmented with NAV calculator Tzero that values assets within three hours of market close. London- based Apex administers $28 billion of hedge fund assets via 34 offices globally. Black Mountain Systems Everest Handles a variety of functions including order management, portfolio management, blackmountainsystems.com reporting, compliance and data management. Primarily designed for managers investing in bonds and loans. San Diego firm founded in 2007. Bloomberg Bloomberg
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