Positioning For A New Financial Landscape - Evolving Operating Models Within The Hedge Fund Industry.

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Positioning For A New Financial Landscape - Evolving Operating Models Within The Hedge Fund Industry.

FOREWORD

As institutions begin to emerge from the financial crisis and global economic downturn, their thoughts are turning towards preparations for the recovery. They are re-configuring business models to suit the new financial landscape, re-aligning their workforce to meet new levels of demand, and re-building customer relationships that have been unsettled during the crisis. There is also urgency in these efforts, as institutions recognize that these preparations must be complete before the recovery is complete if they are to make the most of the opportunities to come.

One sector currently making preparations is the hedge fund industry. Demands for increased transparency and higher frequency reporting, as well as a renewed understanding of the risks of depending on single source suppliers, means that hedge funds are having to re-invent their business models to remain viable in this new environment. These new models will require funds to bolster their risk management function, add horsepower to their collateral and counterparty risk management, get more out of their fund administrators, and refine their mix of prime brokers to "institutionalize" risk and investment processes.

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