Insurance News Net – Traditionally IT vendors have had limited scope to service the lucrative world of the hedge funds, but increasing exposure and regulation are forcing this industry’s participants globally to look to technology to ease some of their pain points. This is according to a new report by independent market analyst Datamonitor (DTM.L) “Securities Processing in Hedge Funds”. It predicts global hedge funds’ investment in IT will reach $3.3 billion by 2009. The report which investigates the technologies being demanded by this industry to cope with new market developments also reveals opportunities for technology vendors are not restricted to the global hedge funds industry alone but also to service providers such as prime brokers and fund administrators.
“The evolution of the hedge fund sector is somewhat inevitable. Hedge funds globally will look to use technology to improve execution capability in the front office as they seek competitive advantage”, says Nii Barnor, financials services technology analyst with Datamonitor and author of the study. “In addition, service providers need to raise the bar too by offering enhanced reporting functionality and superior connectivity to clients.”
Hedge fund industry set to provide new opportunities for IT vendors to target
