Why emerging fund managers are launching with Bipsync

New and emerging hedge funds must seek a competitive edge. Their proposition to the market comes from being different and better in their application of intellect. In other words, their vision and implementation of unique, proprietary research insights and methodologies is a major part of what sets them apart.

As technological advancements reshape traditional practices, the Research Management System (RMS) has emerged as a pivotal tool in optimizing research processes and decision making – empowering hedge funds with the necessary framework to both wield their competitive advantage and continuously improve it. In this blog, we explore this and other strategic advantages of deploying RMS into the tech stack early on – potentially from day 1 – drawing on the experiences of a number of startup funds ranging from $500m to $3.4bn AUM who adopted Bipsync in the past year. 

Consolidated hub of streamlined investment workflows and centralized system of record

In the fast-paced world of hedge fund investments, the early adoption of Research Management Systems can be a game-changer. One of the key advantages is the ability to centralize data. By consolidating information from various live investment data sources, the RMS creates a unified platform where the entirety of the investment process lives in one place. This centralization not only streamlines workflows but also provides a historical record of all interactions, allowing for a comprehensive analysis of past research processes and artifacts.

Moreover, RMS facilitates the integration of critical processes and workflows. The seamless integration of third party data providers and adjacent enterprise applications (a portfolio management system (PMS) being just one example), alongside familiar software and add-ins such as Adobe and Microsoft Office (Outlook, Excel, etc.) allows for a holistic approach to investment management. This integration enables hedge funds to adapt and refine historical research processes, leading to enhanced decision making and, ultimately, higher alpha generation. 

The powerful, centralized reporting capabilities of the modern RMS also offer myriad benefits, not least in compliance and governance (see below) but also more efficient operational processes. By centralizing research, reporting becomes seamlessly integrated into your investment processes. Instead of spending time and effort requesting analyst reports on the latest manager interaction or to see how many notes have been created on a specific company or idea  – an RMS can produce these reports automatically leaving your team to focus on the ideas that matter.

The modern RMS and its relevance for start-ups and scaling firms

Early RMS solutions were once the reserve of established firms, whereas the modern RMS of today has evolved to embrace start-ups and scaling entities. 

Modern RMS solutions, exemplified by Bipsync, prioritize seamless adoption and user experience. This is key to both immediate value returns and long-term success. Numerous user-driven and operational factors work together in the modern RMS to enable rapid deployment, extensive customization and the ability to combine a highly intuitive, ‘consumer-like’ user interface with the robust data management and governance features of a compliant, enterprise-scale software implementation. Bipsync RMS is perfect for dynamic startups with remotely distributed teams, presenting a consistent UX on mobile platforms with a dedicated app.

Needless to say, an RMS is an industry-standard tool that benefits any hedge fund, improving performance management and the individual productivity of research analysts within a purpose-built, auditable system. Like any tech stack commitment in a growing firm, it will witness many new users arrive and a fair number depart. An oasis of calm amid all that ebb and flow, an RMS like Bipsync mitigates the loss of institutional knowledge and facilitates the easy onboarding of new analysts and their work into recognized, shared workflows without constraining their preferred research practices.  

Bipsync serves as a strategic partner for growing hedge funds, assisting in the creation of new workflows as they naturally emerge. This adaptability ensures that the RMS aligns with the specific needs of the firm, fostering efficient operations and sustained growth.

Takes multi-strategy research complexity in its stride

The challenges hedge funds face in managing research are compounded by the growing trend of launching multi-strategy and multi-asset funds. Here, RMS solutions like Bipsync come into play. Bipsync provides a purpose-built platform that can efficiently manage multiple investment strategies, offering a one-stop solution for diverse research needs.

By adding process control without constraining the dynamism and flair of individual research analysts, Bipsync ensures that research efforts are effectively organized and accessible, thus contributing to improved collaboration and decision making.

RMS through the lens of volatility

Market volatility is a fact of life and, like a sea captain confronting a horizon of volatile ocean currents, the fund manager must plot a course that avoids risks while remaining vigilant to new opportunities. New funds, like freshly painted vessels making their maiden voyages, are under tremendous pressure to establish a track record of success in stormy waters.

The ability of an RMS to adapt to changing market dynamics is a crucial factor for hedge funds. These systems offer real-time data analysis and insights, aiding in swift decision making during turbulent times. The transparency provided by RMS allows fund managers to track, resurface and correlate critical research insights and patterns – even those held in unstructured formats – in order to navigate uncertainties with confidence. This leads to better risk management and optimized investment strategies.

Compliance, security, and ESG considerations

In an era of heightened regulatory scrutiny, compliance, and security are paramount concerns for hedge funds. RMS plays a crucial role in ensuring that research processes adhere to regulatory standards, and create an audit trail to check the compliance box for potential discovery requests. Good governance also extends to cybersecurity with RMS providers like Bipsync that are certified to SOC 2 and other standards.

Additionally, the integration of Environmental, Social, and Governance (ESG) considerations and alternative data in modern RMS systems aligns with the industry’s increasing focus on responsible and sustainable investing.

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The short, medium and long-term benefits of implementing Research Management Systems early in the lifecycle of hedge funds are undeniable. From centralizing data and enhancing historical research processes to addressing challenges and adapting to market dynamics, RMS is a strategic asset for investment success. As the investment landscape continues to evolve, embracing the power of RMS becomes not just a choice but a necessity for those seeking a competitive advantage.

See why Bipsync is trusted by investment firms covering over $4 trillion in assets.  Book a demo with us today!