Evolving operating models within the Hedge Fund industry

Recent events in the global financial markets have forced hedge funds and their service providers to reassess their business models and go-tomarket strategies. Lack of credit, failures of broker-dealers and banks, and volatile asset values have reaffirmed the importance of risk management, operational controls, and business relationship management.

These trends will likely trigger a sweeping change in how the key players operate. The current market conditions require hedge funds, prime brokers, and hedge fund administrators to reevaluate their interactions with each other to stay competitive. The landscape will experience a permanent shift, with changing value propositions, business focus, and service offerings from a few years ago. The hedge fund operating environment is morphing into a Networked Enterprise structure that demands a trade off between flexibility and complexity. We attempt to look at each of the participants in the Networked Enterprise to assess how their interactions will change in the future, and what they need to do to adapt.

The full report is on :
http://www.deloitte.com/dtt/cda/doc/content/us_fsi_IM_evolvingmodelsHF_may09(1)(1).pdf