Hedge funds are set to spend an estimated $2.09 billion on
IT this year – representing an average of around nine
basis points of total assets under management –
according to a new survey by Citi Prime Finance and software
and consulting services firm First Derivatives.
The Prime Finance 2011 IT Survey documents the
industry’s aggregate expenditure on information
technology, as well as the average expenditure per hedge fund.
The report surveyed 75 hedge funds in the US and Europe, along
with 15 vendors.
The results suggest that hedge funds are changing their
approach to investing in IT in several ways. While hedge funds
have traditionally sought to...