Client Overview

Our client is a prominent global multi-strategy long/short hedge fund managing assets across three funds and four Separately Managed Accounts (SMAs). With a strong track record and a growing investor base, the fund sought to optimize its operational infrastructure to accommodate its expanding portfolio and investor demands.

The Challenge

Despite its success, the client faced significant challenges with its existing operational setup, primarily revolving around a legacy Order Management System (OMS) from a renowned provider. This system proved to be operationally inefficient, requiring manual reconciliation and accounting processes, and was prohibitively expensive to maintain. Moreover, it lacked the scalability necessary to support the fund's growth trajectory effectively.

The Solution

Recognizing the need for a transformative solution, the client turned to Nirvāna's integrated, cloud-based front-to-back workflow platform. This comprehensive solution replaced the legacy OMS and introduced a full shadow accounting system, all consolidated within a single database. The implementation of Nirvāna's platform not only automated reconciliation processes but also upgraded service capabilities, significantly enhancing operational efficiency.

According to the client's CFO, Nirvāna's solution facilitated operational scalability to such an extent that the fund was able to grow its assets and handle multiple customized SMAs without increasing operational headcount, all while reducing spending.

Key Solutions Implemented

1. Cloud-Based OMS
   Nirvāna's cloud-based OMS streamlined the fund's investment process, integrating front, middle, and back-office functions onto a unified platform. Additionally, the application effectively managed complex pre-trade compliance rules across various accounts, ensuring regulatory adherence.
   
2. Data Management
   Leveraging Nirvāna's data management service, the client realized significant time savings, with automatic reconciliation of positions, trades, and cash, saving 20-40 man-hours per week. Expert data oversight was provided without the need for additional hires, further optimizing operational efficiency.
3. Shadow Accounting and Reporting
   Nirvāna's General Ledger offered portfolio accounting with comprehensive shadowing of the fund's business activities across multiple funds and counterparties. Moreover, Nirvāna's reporting capabilities satisfied diverse stakeholder needs, including investors, C-level executives, and portfolio managers.

Outcome

By partnering with Nirvāna and implementing their cloud-based solutions, the hedge fund achieved remarkable improvements in operational efficiency and scalability. Automation of key processes, coupled with enhanced data management capabilities, enabled the fund to streamline operations, reduce costs, and accommodate its growing investor base and portfolio complexities effectively. This successful transformation solidified the fund's position as a leader in the global hedge fund industry.