Technology has significantly transformed the financial industry, thanks to the modern apps and software that improve data management, data processing, execution cost, liquidity management, and more. In the context of hedge fund management, technology advances that optimize and automate the operation of this data-rich realm make everything quick and easy.
What is modern hedge fund software?
Technically, hedge fund software is a cloud-based or web-based next-generation tool used by fund managers and investors to monitor and analyze portfolio performance. Investing in the best software helps in mitigating the risk factors and even using cryptocurrencies for portfolio diversification. It provides investment portfolio updates and real-time reporting, which increase the trust and confidence in investing. The automated transaction process makes it easy for the investors and hedge fund administrators to earn higher returns, create opportunities to raise capital, manage the account, enhance communication, access the necessary data, and keep track of compliance regulations across the world.
Types of hedge fund software and functions
Hedge fund software is basically used for purposes of planning and executing trades. However, you can also find software for general researching and modeling.
- Analytics software – It provides investors with crucial insights about the market condition and the strengths/weaknesses of trades. This software works by analyzing the chart patterns, price movements, and other vital statistics to help traders in decision-making and positioning in the market.
- Execution software – As the name suggests, this software is used in making trades. It is also referred to as Execution Management System (EMS), a tool that enables investors and traders to engage with the market. It comes with an interface that displays trading algorithms as well as pre or post-trade analytics. Some software offers access to trading exchanges, real-time information, and other liquidity sources.
- Modeling and Research software – For purposes of market research and modeling, general business or consumer-based software can be used. For specialized data access or management, you may need specialist software instead of a non-specialized one.
All-inclusive model vs. model with a set of tools
Modern-day investment and trading need reliable tools to hold the data and access them in real-time. Almost all technology solutions that are created today aim to fast-track the operation and management of the data. Cloud technology has dramatically changed the landscape of hedge fund investment.
Options to choose from:
- All-inclusive software – It is an all-in-one solution or software that offers analysis and trading tools. It does everything that hedge fund administrators do professionally. One of the best products in the market is MetaTrader 5, a platform that can automate funds within 5 minutes.
- Set of different tools – It refers to different systems that help hedge fund managers such as CRM (Customer Relationship Management), Financial and Invoicing software, Order Management System, and Portfolio Management System.
Best hedge fund software to consider
All-in-one: MetaTrader 5 for hedge funds
It offers a multi-asset structure in one platform, eliminating separate exchange terminals. MetaTrader 5 for hedge funds uses a single terminal with integrated analytics and risk management tools to access various markets, utilize strategies, and customize the interface. Users receive direct access to more than 80 liquidity providers and exchanges across the world, communicate easily with brokers via One Click Investment, and access to MQL5 cloud testing that delivers hypotheses in just 30 minutes.
With scalable fund administration and management, investors, traders, or administrators can set the amount they want, withdraw money, restructure and control the portfolio, and manage risks. It’s easy to automate workflow and access the platform via Mac, iPhone, Android, Windows, and browser-based SaaS. It is perfect for algo traders and is approved by the HFM Connect hedge fund community. Traders can try algo trading or advanced backtest using the real-market or historic data. It supports Python, MQL5, and SQL languages. Priced at $2,000 per month, MetaTrader 5 is a real deal-breaker for hedge fund administration as it ensures maximum flexibility.
Research and analytics: Bipsync
With easy-to-navigate, centralized RMS, data integration, and process management features, Bipsync makes researching hedge funds convenient for investors and traders. It is a powerful and intuitive platform that enhances collaboration and productivity. This software offers portfolio, compliance, and contact management; investor reporting and accounting; partnership accounting, P & L calculation, portfolio and performance analysis, and API access. Price is available upon request and can be customized according to the user’s needs.
Analytical and accounting: FundCount
It is a software solution for partner accounting and analytics. It offers a set of tracking, analyzing, and reporting tools for complex investments. FundCount is ideal for hedge funds, fund managers or administrators, and equity firms. It works with Windows and features a multi-currency general ledger with reporting, automated workflow, and measurement tools.
Subscription begins at $25,000 per year, inclusive of upgrades, customer support, and maintenance releases. There is an option of partnering with firms and offers startup prices.
Investment management: StockMarketEye
This investment management software is great for advisors and individual investors. StockMarketEye helps you monitor and manage your portfolio in a single platform, access analytics, and keep abreast of the market movements. It works with Windows, Linux, Android, Mac, iPad, and iPhone.
This software also offers data import/export, performance metrics, modeling and simulation, benchmarking, and commodities like bonds/stocks. However, it does not offer algorithmic trading tools, real-time market, and historical price charts. StockMarketEye is priced at $74.99 per year with a 1-month free trial.
Comprehensive analysis tool: PackHedge
It is an excellent investment software solution for hedge funds as well as other alternative and traditional financial instruments. PackHedge comes with compliance, CRM, and KYC (Know Your Client) tools and is available for Windows, Android, and browser-based SaaS.
It offers research, exposure, scenario, and risk analysis along with portfolio construction, allocation of resources, portfolio shadow accounting, investor reporting, compliance management, and more. Subscription every year costs $4,500.
Key players in the investing world are now embracing tech solutions to improve the overall efficiency of hedge fund management, analysis, and accounting. Each hedge fund software has its stellar features, but if you want to leverage everything, cloud-based MetaTrader 5 is your best option. Having it as a tool makes a huge difference in the growth of your portfolio as it acts as an all-in-one hedge fund platform.