NEW YORK
(HedgeWorld.com)—Hedge fund solutions provider Paladyne
Systems LLC will add Interactive Data Corp.'s pricing
and reference data to its front-to-back office hedge
fund suite. Paladyne offers order management, real-time
profit and loss statements, portfolio management and
accounting, reporting, data warehousing and analytics
and reference data management either via a hosted
solution or an on-site local installation.
"The strategy of Paladyne is to offer a full
service—hedge fund in a box—to hedge fund clients,"
Sameer Shalaby, Paladyne's chief executive, said in an
interview. "We do that through product development and
partnerships." He added that Paladyne, which until now
has primarily offered its clients Reuters data feeds,
has seen a lot of interest in getting access to other
data vendors. "So we extended that by adding
[Interactive Data] as a partner. . . . It was a natural
choice to complement the Reuters partnership." Reuters
is the parent company of Lipper HedgeWorld.
By adding Interactive Data to its platform, Paladyne
aims to provide hedge fund users with instant data
access to meet their operational and decision-support
requirements. Interactive Data collects and keeps
information on more than 3.5 million securities,
including daily evaluations for around 2.5 million
fixed-income and equity issues worldwide. The company
offers securities pricing, evaluations and reference
data, among other information.
"The hedge fund industry is more looking for an
end-to-end solution," Mr. Shalaby said. "A lot of the
challenges they face is all the headache of multiple
vendors … they want to focus on their core business" of
investing and fund management, he said. "All other
ancillary functions are required, but they're not part
of that core business." Thus, once Paladyne forms
partnerships, it works with those counterparties to make
sure their products are integrated smoothly into the
Paladyne system. "The ASP-hosted solution bundles
everything—it's a one-stop shop," Mr. Shalaby added.
And as more money managers look to outsource their
administrative and middle- and back-office functions,
technology vendors like Paladyne likely will be keeping
busy. A recent survey of more than 150 mutual fund,
hedge fund and asset management professionals by
PricewaterhouseCoopers found that 62% of respondents
plan to keep third-party service deals, and 40% of
managers are looking to boost outsourcing in order to
focus more on their core competencies Previous
HedgeWorld Story. In addition, according to PwC, the
growth in outsourcing should be especially significant
among alternative investment firms.
MShea@HedgeWorld.com
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