Brokers and asset managers alike must provide best execution to their clients, and a big part of best execution is transparency – in process, practice and performance. In fast-moving markets, there are ample opportunities for mistakes to occur, no matter how skilled the trading desk. During post-trade processing, when buyers and sellers match the details of orders, change the record of ownership and make/accept payment for securities, quality execution ensures that these tasks are carried out efficiently, accurately and transparently.
Hedge fund launches are at 18-year low and emerging managers are facing an uphill battle for capital when compared to their larger, more established peers. According to the Financial Times “The composition of the hedge fund industry’s investor base has also changed over time. Allocations are now dominated by large institutional clients that have a bias towards larger managers. Competition to win seed capital is also also intense so it is increasingly difficult for new managers.”
The good news about these challenges is that if you have them, it likely means you are growing. The bad news is that these problems, if unchecked can delay your rate of growth or in extreme cases can even prevent it altogether. As part of our Insights series the Theorem team has provided detailed overview of five common challenges and ways to avoid them some of the common problems they cause.