VanthedgePoint middleware targets small-sized hedge funds
30 January 2006 | 1375 views | 0
VanthedgePoint Group LLC today announced the creation of a new platform to meet the specific needs of small and growing hedge funds.
VanthedgePoint is responding to the plight of small hedge fund managers by developing a patent pending, robust middleware technology designed to help them grow and sustain their businesses.
"Hedge funds with under $50 million in assets under management remain a vast and underserved market within the hedge fund industry," said Geoffrey M. Tudisco, founder and CEO of VanthedgePoint Group. "VanthedgePoint has interviewed numerous small hedge fund managers with the goal of identifying the most salient they face to develop a comprehensive platform that empowers them, and improves their ability to succeed as a business."
VanthedgePoint's unique technology delivers an integrated services platform that improves manager productivity, reduces operating costs and increases marketability to investors. Small hedge funds are overlooked by traditional hedge fund services firms such as prime brokers and fund administrators because a majority of hedge funds are unable to generate sufficient fees. Instead, these service providers focus on multi-billion dollar hedge funds, which they consider to be more profitable clients based on their internal cost structures.
Launching in the second quarter of 2006, VanthedgePoint seeks to level the playing field between small hedge funds and their larger multi-billion brethren. VanthedgePoint employs a patent pending business model that aggregates small hedge funds to create economies of scale that result in improved operational efficiencies and lower costs for its clients. The result is a hedge fund that has lower operational risk and a reduced cost structure, which makes it more attractive to potential investors.
"VanthedgePoint has clearly identified the primary sources of frustration for small hedge fund managers like myself, and has developed a compelling solution to address our needs," said Neil Levy, portfolio manager of Highpoint Capital Advisors, LLC, and a VanthedgePoint client. "Their solution allows me to focus on my investment strategy, and provides my fund with the infrastructure necessary to attract a broad range of investors."
"By improving the operational stability of our clients, we help make them marketable to a larger audience of potential investors," said Kevin M. LoPrimo, Managing Director, VanthedgePoint Securities LLC. "The tools and services we provide small hedge funds are the same as those used by multi-billion dollar hedge funds, which means our clients are better able to compete when trying to gather assets."
Kevin M. LoPrimo joined the firm in August 2005 as a Managing Director at VanthedgePoint Securities, and is an equity partner in the firm's parent company VanthedgePoint Group. Prior to joining VanthedgePoint, Mr. LoPrimo led client services and product development at Goldman Sachs' prime brokerage units in New York and London. He was then recruited by Merrill Lynch International to help build up its international prime brokerage unit, which is based in London.