More than 150 senior executives from across the hedge fund industry filled a midtown auditorium here recently to kick-off the formation and first meeting of the new Data Management Working Group for the Alternatives Industry (DMWGAI).
Developed over months of work by a core group of industry leaders, the DMWGAI’s mission is to create a strong culture of data management within the alternatives investment industry. To achieve this mission, the DMWGAI will seek to find solutions to data management issues, improve the quality of data within the industry, foster a strong culture of data management within the alternatives sector, and develop and promote awareness of data management best practices and governance standards.
“The response and feedback to our launch has been well beyond what any of us expected,” said Marshall Terry, Founder and Interim Head of the DMWGAI and Managing Director, Chief Operating Officer and Chief Compliance Officer of Rotation Capital Management, LP. Mr. Terry noted that more than 250 executives representing hedge fund management firms, hedge fund allocators and industry service providers registered for the January kick-off and that more than 150 participated.
At the launch, the recurring theme expressed by panelists and attendees was the importance of developing data management awareness within individual firms and the industry. In support of this, panelists talked about the many benefits that can be derived from a strong data management practice. Speakers explored how a robust data management program and governance can significantly reduce operational, regulatory and cyber security risks. The group also discussed how a strong culture of data management at individual firms can result in significant increases in operational efficiencies and related reductions in operating costs.
Among the companies taking part in the DMWGAI as founding members and panelists at the kick-off event: Abacus Group LLC; ABS Investment Management LLC; ACA Compliance Group; Backstop Solutions Group; Bloomberg LP; Bracewell LLP; Citco; Duff & Phelps, LLC; Eze Software; Financial Fabric LLC; The Investment Management Due Diligence Association (IMDDA); Light Sky Macro LP; PwC; Rotation Capital Management, LP; and SS&C Technologies, Inc.
According to the DMGWAI, current initiatives include i) holding further meetings with more focused data management discussions; ii) developing break-out teams to identify, discuss and categorize alternative investment industry data management issues; and iii) creating a DMWGAI online forum where people can ask questions and encourage discussion.
A survey to determine the hidden costs associated with poor data management practices across the hedge fund industry will be underway soon.
Alternative investment industry data management professionals and executives involved in this area are encouraged to get involved in the Group. To do so, a LinkedIn Group has been established and professionals are welcome to sign up.