WATERTOWN, MA – 5 December, 2005 – Momchil Mitov, Director of Business Development of Netage Solutions, has authored an article on the risks hedge funds should take into consideration when choosing an investor relations and compliance management system. The article was published in the 2005 SEC Adviser Registration Guide produced by Lipper Hedge World Research.
The article, entitled “The Risks of Selecting an Investor and Compliance Management System”, describes nine considerable risks that often go unnoticed by hedge funds in their search for a technology solution that addresses SEC registration requirements.
Among the risks that can turn into a ticking time bomb is the risk of using a system that disrupts other business-critical systems it interacts with, or the risk of selecting an investor relations and compliance system which cannot scale up to meet the increasing needs of the growing hedge fund.
According to Mitov, such risks result from lack of expertise or poor planning and requirements gathering, all factors that hedge funds can plan for and control during the selection process. The author also suggests ten tips for easier navigation in the technology vendor universe — “Do more due diligence on the system, the service provider, and your own processes. For that, seek out systems that are certified to follow industry best practices, estimate the growth of your investors and contacts, and do not underestimate the importance of reference checks.”
The special supplement, “It’s the Rule: The New SEC Adviser Regulation for Hedge Funds,” is published in PDF format and contains news reports from HedgeWorld.com, advisories and analysis from eight leading law firms, and commentary from consultants on management and technological issues — all pertaining to the SEC’s new registration rule, scheduled to take effect February 6, 2006.
About Lipper HedgeWorld
HedgeWorld is the leading news, research and analysis source for the global hedge fund community. Established in 1999 by a consortium of private investors including Tremont Capital Management, HedgeWorld recently was acquired by Lipper Inc, a global provider of mutual fund information and analysis and a wholly owned subsidiary of Reuters. HedgeWorld includes proprietary research products such as HedgeWorld’s Inside Edge and The Alternative Advantage and the Lipper TASS database, the leading institutional-quality hedge fund database which covers some 6,900 hedge funds. The company has offices in New York and Chicago.
About Netage Solutions
Netage Solutions, Inc. has been a global provider of software for the alternative investments community – private equity and hedge funds, funds of funds, real estate funds, institutional investors and prime brokers – since 1998. Intuitive and industry-specific, our solutions improve the productivity of deal and investor relations teams worldwide. Our clients manage funds with over $200 billion, report their results to over 10,000 investors, and employ over 1,000 professionals.
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