LatentZero, the leading provider of front office systems for the buy-side, is targeting the hedge fund industry with adaptations made to its Capstone solution.
In addition to its existing capability to manage positions and real-time P&L by fund and by any sector type, Capstone now enables hedge fund managers to analyse their portfolios and drive their trading activity by strategy or sub-strategy.
Elizabeth Brown at LatentZero said: "The gap between hedge fund requirements and institutional funds is getting narrower all the time. Institutional investors are investing in a wider range of assets, including derivatives, as a matter of course, which have historically been the reserve of the hedge funds. And with more pension money being allocated to hedge funds and increasing regulatory attention, hedge funds are required to run their operations to institutional standards.
"There is a clear need for technology that supports hedge fund work-flows, streamlines operations and ensures compliance. As a broker-neutral solution provider that already counts eight of the world's top ten asset management firms as clients, LatentZero is well-positioned to provide the systems with exactly the right functionality and controls that hedge funds are looking for."
Capstone provides comprehensive position analysis, order management, trading and compliance functionality. The system supports all asset classes, including equities, fixed income, exchange traded and OTC derivatives, money markets and foreign exchange. Portfolios can be analysed in real-time, for example by strategy/sub-strategy, asset class, long/short, manager and trader, gains and losses, or prime broker. Real-time pricing from Reuters and Bloomberg is integrated throughout the system.
Capstone is the only solution that provides integrated order management (OMS) and execution management (EMS) capabilities and can operate across multiple, global sites, from a single central system. Pre- and post-trade allocation to multiple strategies or funds is supported using various methods including sell out and level off.
Capstone also includes Sentinel, LatentZero's market-let-leading pre- and post-trade investment compliance system, which enables hedge funds to monitor activity and limits at strategy and fund level, to ensure that the funds are managed in accordance with guidelines and the likely growth in regulation under which these funds will need to operate.