Although the hedge fund industry is expanding in various directions, it is now recognized as a mainstream alternative form of investment. Funds are growing both in size and the diversity of investment options provided; and most importantly, they are now being viewed as a suitable investment vehicle for institutions.
Institutional clients are pushing for returns, but are also requiring controls and efficiency. As the hedge fund industry becomes more institutionalized, its operational tactics and practices must become more standardized.
Investors, however, need to understand that the hedge-fund promise of delivering absolute returns means the hedge funds are less inhibited in the areas of registration, investment positions, liquidity and fee structure; they have been able to avoid registration by limiting the number of investors and requiring that their investors be accredited. Furthermore, hedge funds are prohibited from soliciting or advertising to a general audience. If unmanaged, this can add significant operational risk.
Operational risk and the standardization of operational processes are becoming a significant issue to both hedge fund investors and administrators, and the ineffective practices of the past and present are no longer adequate. This requires new strategies focused on identifying and mitigating the most common forms of operational risks.
The increasingly formalized operational and administrative structures within hedge funds have to manage multiple prime brokerage relationships and require standardization of operational processes, technology platforms and more of a focus on straight through processing.
This conference will bring together leading hedge fund operations executives, including executive level officers, investor relations directors, controllers, operations managers as well as prime brokers, technology providers, fund administrators, accounting firms, and due diligence and valuation consultants to discuss the latest trends and methodologies in the operation practices and processing of hedge funds. Attendees will hear the challenges that are faced by all segments of the financial services industry, as well as practical industry-tested solutions.