With the $1.2 trillion fund of hedge funds industry in a spirited race to attract institutional investors, youDevise Ltd have released an upgraded version of its Hedge Fund Information Provider (HIP) online portfolio management system.
“The new, more powerful HIP 2.0 provides the control, data accuracy, timeliness, reporting and transparency that institutions are demanding before they invest in a fund of hedge fund,” says Richard Koppel, managing director, youDevise, who advises FoHFs on how to reduce information risk.
FoHFs increasingly are targeting institutions, which are replacing high net worth individuals as the lead source for new assets under management. A recent study reports that institutional money will grow to nearly 25% of all hedge fund AUM, from 15% today, with half of that increase going to FoHFs over the next five years.
HIP 2.0 features new front office management decision support, expanded middle office operating capabilities, and enhanced usability. The “Portfolio Manager Dashboard” provides FoHF managers with a veritable command centre, using tables and graphs to monitor real time performance, liquidity and cash, and to analyze positions, investment styles, and allocation strategies.
“HIP 2.0 makes it easier for managers to find the information they need, make decisions faster and take advantage of market opportunities. In addition, HIP 2.0 is easy to install. No customization is necessary. We can input all the historical data. Clients can be up and running in weeks,” adds Koppel.
The unique and complicated information requirements of FoHFs present a major challenge in attracting institutions. FoHFs need to track performance at the fund level and for investor share classes that have intricate structures, complex fee arrangements, and various currency denominations. Hedge fund subscriptions also involve different lockup terms, fee and settlement schedules, notice periods, and gating.
In an attempt to tackle solve problems, youDevise launched HIP 1.0 in May 2006 as the first online portfolio management system for FoHFs. Currently, five clients based in the U.K. and Europe are using HIP to manage a combined AUM of more than $8 billion.