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Hedge funds to spend over $2 billion on IT in 2011, says Citi


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