To infinity and beyond – Market Insight Report Thu | 10 Sep 2020, 12:53 Covid-19 has created a series of dynamic opportunities for hedge funds, presenting managers with the opportunity to diversify into new markets and new asset classes to seek out fresh sources of alpha. Hedge fund managers need to be able to strike while the iron is hot and have the confidence to scale up their businesses and maintain an AUM growth trajectory by diversifying into new asset classes. In order to diversify, and capitalise on dislocation opportunities in areas like distressed credit or convertible bonds, managers need to ask themselves, ‘Does our current operational infrastructure allow us to trade new assets, and still present us with an accurate view of the world?’ Often, this is easier said than done. In the following report, produced in collaboration with FIS Global, we outline how managers can remove operational complexity by leveraging specialised systems that can support their asset diversification objectives across the lifecycle: from pre-trade position modelling and scenario testing, to price analysis, portfolio management and compliance management.
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