Horizon scanning of 2022

23rd January 2023

The UK investment and hedge fund industry is a rapidly changing sector with a complex and ever-evolving regulatory landscape. Many UK hedge funds and investment firms are turning to managed service providers to provide horizon scanning and keep them informed of the latest regulatory changes. This thesis will explore the reasons why managed service providers are becoming an increasingly popular choice for smaller UK hedge funds and investment firms, and how their horizon scanning capabilities can provide these firms with a competitive edge in an ever-changing industry.

The UK investment and hedge fund industry is a highly regulated sector that is subject to ever-changing regulations. Regulatory changes can have a huge impact on the way in which hedge funds and other investment firms operate, and they must be able to adapt quickly to remain competitive. Additionally, the industry is incredibly complex, and with new regulations and amendments being made regularly, it can be difficult for firms to keep up with the latest developments. This is where managed service providers can help.

Horizon scanning to stay competitive

Managed service providers are an invaluable resource for smaller UK hedge funds and investment firms, as they provide a comprehensive horizon scanning service to ensure that firms remain informed of the latest changes and developments in the industry. Horizon scanning involves monitoring the industry landscape to identify potential risks and opportunities, and to anticipate potential changes in the regulatory environment. This allows firms to stay ahead of the competition by ensuring that they are aware of any changes that could affect their operations and allowing them to take appropriate action to remain competitive.

Benefits of managed service provision

Managed service providers provide a wide range of services to smaller UK hedge funds and investment firms, including the provision of horizon scanning. This can be a cost-effective solution for firms, as they do not have to invest in staff or resources to conduct the necessary research and analysis. Additionally, managed service providers can provide valuable insights into the industry and provide guidance on how firms can best respond to the latest regulatory changes. This can help firms remain competitive by allowing them to take advantage of new opportunities presented by the changing landscape, while also helping to minimise any potential risks.

Managed service providers are increasingly becoming a popular choice for smaller UK hedge funds and investment firms due to their ability to provide horizon scanning. Horizon scanning allows firms to stay informed of the latest developments in the industry, and to quickly identify potential opportunities and risks. This can provide these firms with a competitive edge that can help them to remain successful in an ever-changing landscape.

In today’s competitive finance sector, hedge funds need to find ways to increase their success. Partnering with an IT managed service provider is an effective way to do just that. Here are five reasons why hedge funds should consider partnering with an IT managed service provider:

  1. Cost efficiency. By outsourcing their IT needs, hedge funds can save money compared to keeping their entire business in-house. An IT managed service provider has the resources and experience to help the hedge fund cut costs and increase efficiency.

  2. Expertise. Partnering with an IT managed service provider gives hedge funds access to best-in-class expertise in all aspects of their business. This can help reduce “key-person” risk, as the provider can help with any aspect of the business.

  3. Technology. By partnering with an IT managed service provider, hedge funds can take advantage of the latest technology without the cost of constant updates. The provider can help the hedge fund keep up with the latest technology and ensure that it is used efficiently.

  4. Scalability. An IT managed service provider can help hedge funds scale up and down quickly and efficiently. With the provider’s help, hedge funds can take advantage of market opportunities and minimise risk.

  5. Focus. By partnering with an IT managed service provider, hedge funds can free up their fund managers to focus on what they do best - nurturing their portfolios. The provider can handle the IT needs of the hedge fund, allowing the fund managers to focus on what they do best.

Outsourcing in other areas can see your hedge fund benefit from further cost efficiency, access to best-in-class expertise, utilising cutting-edge technology, operational excellence, and freeing up fund managers to focus on their portfolios:

  1. Research and Market Analysis. Outsourcing the research and market analysis process to an external expert can help a hedge fund gain access to a wider range of data and insights. This can help the fund make better decisions on investments and understand current market conditions.

  2. Regulatory Compliance. Outsourcing regulatory compliance can help ensure that a hedge fund is compliant with all applicable laws and regulations. This can help reduce risk and protect the fund from potential fines and other penalties.

  3. Accounting & Back Office Support. Outsourcing the accounting and back-office processes can help a hedge fund save time and money. This can also help improve accuracy and efficiency when generating financial reports and other documents.

  4. Technology & Infrastructure. Outsourcing technology and infrastructure can help a hedge fund stay up to date with the latest systems and software. This can lead to greater efficiency, reduced costs, and better security.

  5. Investor Relations & Fundraising. Outsourcing investor relations and fundraising can help a hedge fund attract more investors. This can be beneficial for both short-term and long-term growth.