Wednesday, April 7, 2010

Hedge Fund Software

Hedging, in financial terms is the practice of attempting to reduce risk by alternative investments in the stock market. Any fund used for such reasons is called �Hedge fund�. The main goal of hedge funds is to get a maximum rate of return, using strategies involving options, short selling and leverage. At the same time, as hedge funds often use futures, swaps and arbitrage strategies, some experts consider them to be a way to diversify investor risks in the stock market.

Hedging is extremely complicated and therefore, hedge fund managers use hedge fund software to manage hedge funds. But exactly how can a hedge fund software help a hedge fund manager? A hedge fund software can help in the following ways:

� Investor management: Hedge fund software can keep track of investor profiles and investment preferences, faxes, e-mails, distribution, etc.
� Investor reporting: Hedge fund software can generate investor specific reports.
� Compliance management and reporting: Hedge fund software can automatically track and file all investor related correspondence.
� Fundraising: A good hedge fund software can even manage prospects, run campaigns, track documents, activities, event management, fund inflows and outflows, etc.
� Third parties management: Finally, hedge fund software can do marketing to third parties, report rollup investment data on institutions, track fee agreements, etc.

There has been a recent spurt in the demand for hedge fund software. This is mainly due to the rising popularity of hedge funds that has led to an inflow of institutional assets. And because of such increase in institutional flow, hedge funds software not only have to deliver personalized client service but they also have to meet compliance requirements.

Hedge fund software are a must have solution for today�s hedge fund managers. Packed with excellent features hedge fund software can be the perfect sidekick for any hedge fund manager. The future of hedge fund software is also looking quite bright. As more investors start investing in hedge funds to offset stock market risks the demand for hedge fund software are bound to increase.

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