Watson Wheatley has successfully implemented TReCs, its flagship reconciliation application, to a large Mayfair based hedge fund for its exchange traded derivative business.
This implementation marks the first large scale deployment of TReCs, a new reconciliation tool built by and designed for high volume alternative asset management business.
The installation replaces existing in-house built systems and reconciles trade, position and cash balance data between Beauchamp Financial’s FundManager accounting system and the client’s clearers. TReCs was chosen by the hedge fund to utilise the product’s strength in reconciling P&L as well as trade quantities and cash, and its flexibility to reconcile cash business to brokers, clearers and administrators.
TReCs’ approach to reconciliation ensures the integrity of all reconciliation data and processes by providing a dual accounting engine covering P&L, cash and holdings. Capable of providing three-way reconciliation between the hedge fund’s portfolio accounting engine, the prime broker and the administrator, the system provides complete hedge fund reconciliation.
The delivery of TReCs to this significant player marks the introduction of a new level of operational control to a sector increasingly focused on managing risk to meet new regulatory and market challenges, and to ensure the accuracy of it’s own data in search for alpha.
“My experience as Head of Operations for large scale asset management and consulting to hedge funds has shown me the lack of real solutions in this critical area. We saw this gap six years ago and have built TReCs to achieve very high levels of automation of matching, but more demandingly, the identification of the cause and finally the automated resolution of breaks. Only with this approach are you able to attain the real control you need whilst minimising the resources required to do this very difficult job,” says Duncan Wheatley, principal of Watson Wheatley.