Taming the Complexities of Daily Hedge Fund Reporting

An independent hedge fund manager reaches the limits of its operating infrastructure. A customized solution based on our platform provided the reporting and other functions it needed.

A unique reporting solution requires problem-solving customization

The challenge:

A Connecticut-based independent hedge fund manager with more than $5 billion in assets found that its unique reporting requirements, combined with a complex master/feeder fund structure and high trading volume, were colliding with the limitations of its operating infrastructure and offshore administrator.

We build service teams that include multiple specialties to help complex customizations and conversions like this one.

The firm required strategy-level reporting across the activities of multiple traders and 15 prime brokers, which added up to about 5,000 trades a day. On top of generating daily net asset values, it also made daily calculations of investors’ account performance and fees on a notional accounting basis. The lack of scalability became so severe that it hampered even the production of estimated NAVs for institutional clients.

The solution:  

At the point of conversion, the firm managed over 90 hedge funds, managed accounts and proprietary vehicles with 1,000+ investors.

We build service teams that include multiple specialties to help complex customizations and conversions like this one. Our fully integrated platform provided the framework to manage data, reporting, and process automation across all vehicles and strategies. After delving into every aspect of the firm’s middle- and back-office operations, our dedicated service team customized the platform to incorporate: 

Our client knew every team member and could work directly with our specialists whenever needed.

  • An accounting methodology tailored to the firm’s preferred performance calculations.
  • A fully automated total equity reconciliation process that accommodates the firm’s use of futures brokers.
  • Daily reporting processes that deliver daily NAVs, fund- and security-level P&L statements, and account reconciliation status reports without delays or disruptions.

Our Solution for Investment Managers

Turn infrastructure into competitive advantage

Our comprehensive investment operating platform is designed to support all major asset classes and investment vehicles across diverse investment strategies and jurisdictions

Learn more
Image: SEI office with art