Insights / 21 December 2020

Hedge Funds Exploit Technology to Reduce Cost and Waste

Tim Ridgway

Tim Ridgway, Director of Governance Services at Crestbridge, explored the ways in which hedge funds are using technology to reduce cost and increase efficiency in a recent article by Laurence Fletcher for the Financial Times. 

The article discusses the new forms of technology that hedge funds are utilising, in particular API connectivity – an alternative, faster and more effective means of communicating with administrators. 

Commenting on API connectivity, Tim explains, “There are definitely efficiency savings there. It saves the manager having to replicate the work the administrator has done, and possibly prevents the manager having to employ extra staff.” 

Tim goes on to discuss how technology is allowing hedge funds to better gauge the number of interactions with the bank and the work it has done, giving the fund’s CFO a clearer idea of how that relates to the money it has spent. 

Read the full article here.