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How Do I Choose the Best Hedge Fund Software?

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  • Written By: K. Reynolds
  • Edited By: Jessica Seminara
  • Last Modified Date: 29 August 2016
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Choosing the best hedge fund software program will vary greatly depending upon the structure and goals of the fund. Every software program is unique and offers a multitude of options in the areas of portfolio management, partnership structure, accounting, and marketing. Although the best hedge fund software will vary with each fund, there is no doubt that a good software program is a critical component of running a successful hedge fund.

Depending upon the needs and goals of the fund, hedge fund software can vary greatly in terms of features and benefits. Some software programs have special features that support mergers and acquisitions, while other programs are geared towards real estate investments. Although the features may be different, a good hedge fund software program should help its users in the administration of their hedge fund. Anyone who is seriously planning to start a hedge fund will need a software program that can track multiple investment opportunities, while at the same time keeping track of the capital contribution of each investor.

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Most of the professional hedge fund software programs will be able to provide users with a portfolio management module that will help in the management of multiple investment types such as stocks, bonds, commodities, currencies, any many more. The portfolio management component of the software program will allow its users to gain insight on the performance of the fund through a variety of investment return metrics. Typically, the software includes calculations on the internal rate of return, return on equity, and a multitude of additional performance-related metrics.

The best software programs also incorporate client modules that will allow the fund’s investors to monitor their investments from anywhere in the world. Investors using these programs are often able to log in remotely, via the Internet, and gain insight into the profitability of their investments as well as tax implications. Client modules are critical in allowing hedge funds to use the technology of hedge fund software to communicate with their investors.

Hedge fund software also can be instrumental in acquiring new investors to the fund. Many of the best hedge fund software programs have a marketing module that allows potential investors to log into the system in order to learn more about the fund and their investment opportunities. The marketing module of the software program can help fund managers to implement a streamlined investor relations program automatically through the use of the software.

Overall, the best software program will enable hedge fund managers to incorporate and host portfolio management, investor relations, and document management systems all in one software program. Regardless of which specific software program is chosen, the best will always encompass similar features. This software is also generally hosted on the Internet, making it a great option for a global hedge fund, as it can be accessed from anywhere in the world.

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