Case Studies


HedgeFacts in action

Our software and services are proven to meet clients’ analytics, middle office and back office needs seamlessly, efficiently, and cost-effectively.

Here are some real-life examples of HedgeFacts working with investment firms to optimize their business operations.

1case study

Meeting the bespoke reporting needs of a hedge fund

A large long/short equity manager had developed its middle and back office capabilities with custom in-house systems involving the use of manually produced spreadsheets. However, the spreadsheet-based system was patchwork in nature, prone to error, and not scalable.

HedgeFacts developed a suite of custom reports for the manager that provided reliable, accurate, and timely information and analyses. HedgeFacts Concierge Outsource Service was introduced seamlessly as the patchwork legacy system was phased out.

2case study

Fulfilling the due diligence standards of institutional investors

A European global macro fund with strong performance sought additional investors. An institutional investor’s due diligence process revealed that the investment manager’s outsourced middle and back office services provider did not have the sophistication, scale, or security safeguards necessary to effectively support a large-scale investment operation.

HedgeFacts provided the investment manager with a comprehensive middle and back office software system. The investment manager passed the institutional investor’s second due diligence review and received a substantial investment inflow.

3case study

Automation of highly complex commodity trading activities

An energy commodities trading firm experienced rapidly expanding growth but had inadequate middle and back office systems. The firm needed a continuous daily information stream to maintain trade allocation spreads and to execute physical product weightings between accounts and funds.

HedgeFacts services greatly expanded the firm's capacity to manage its business. The firm then increased the number of managed accounts, significantly reduced staffing costs and lowered operational risk.

4case study

Consolidating and scaling up a separately managed account platform

An institutional asset allocation fund manager asked HedgeFacts to create a consolidated risk and performance reporting system. The manager wished to monitor performance and exposures at the level of each underlying investment manager, and also continuously monitor the performance and exposures of the fund’s aggregate portfolio. The fund manager was using three third-party systems – software for risk assessment, another system for performance reporting, and a fund administrator service. These three systems produced conflicting information.

HedgeFacts Concierge Outsource Service provided the fund manager with substantial cost savings, greater accuracy, and more prompt reports. Those HedgeFacts reports provided on-demand risk, exposure, and performance data for both the assets managed by each underlying investment manager and the fund’s aggregate portfolio.

5case study

Emerging commodity trading advisor gains 100+ SMAs

A manager for an emerging quantitative commodity trading advisor had grown his business by attracting separately managed accounts of high-net-worth investors and institutional allocators. After utilizing HedgeFacts Nested Software Service, the commodity trading business expanded quickly and the manager soon more than tripled the number of managed accounts and assets under management. HedgeFacts services generated prompt and comprehensive reports empowering the manager to prioritize his core investment activities and focus on business growth.