According to the results of HFM’s recent Insight report, Edge Technology Group ranked at the top of the global Managed Service Provider (MSP) category and is considered the best value for the money. In addition, Edge ranked in the top three for both Cloud and Cybersecurity services. The report findings were based on the unsolicited survey responses of hedge fund COOs and CTOs across the globe. The following is a summary of all of the key performance areas within the HFM report related to Edge. You can view the full report here.
Managed Service Providers: Based on the responses to the HFM report, most hedge fund managers do not use a Managed Service Provider (MSP). This indicates that the MSP market for hedge funds may still be in its infancy. A CTO at one UK-based billion dollar club manager was quoted in the HFM report as saying, “every single function” at a hedge fund business could be moved to an MSP. Edge tops the MSP rankings by hedge fund managers in the HFM Insights report (Exhibit 4.2). In the report, HFM states that “Edge has become one of the most recognizable names of specialist cloud, security and IT solutions in the alternative and asset management space.”
Cloud and Data Services: The report also notes that 58% of respondents use a third-party cloud/data service provider, with Microsoft Azure as the clear first choice for public cloud services (31%). Interestingly, Edge ranked just two percentage points behind the second choice, Amazon Web Services (AWS) as noted in Exhibit 4.1 below.
Cybersecurity: As noted by the HFM Insights report, cybersecurity is becoming increasingly important to the modern investment manager and has the highest rate of third-party involvement of the areas covered in the report. Edge’s enhanced focus on cybersecurity solutions, purpose-built for the alternative investment industry is evident in the survey results below (Exhibit 3.2).
Value for the Money: The HFM report also found that, “Several COOs interviewed heaped praise on their niche infrastructure service vendors, highlighting their innovation, superior communication, and intimate knowledge of their ﬁrm. In short, do not let price savings alone turn your head.” As Exhibit 4.3 below indicates, Edge holds its own with Amazon and Microsoft among respondents in regards to cloud/data services. The HFM research also shows that Edge ranks number one among the top three MSPs, and hedge fund managers consider Edge to be the best value for the money.
HFM conducted a proprietary survey of hedge fund professionals with oversight of their ﬁrm’s technological infrastructure conducted during the ﬁrst quarter of 2020. As a result, the respondents were primarily COOs and CTOs. The graphic below outlines the demographics of the respondents to the HFM survey.
To learn more, read the full HFM Insights report: Tech Vendor Rankings and Ratings which goes into much more depth and also covers other topics, such as core systems vendors and trading systems.
About HFM Insights
Insights is the research and analysis service from Pageant Media, sitting within the company’s hedge fund intelligence network, HFM. The division produces research reports and analytical articles on a variety of topics in the global hedge fund industry, including business operations, investor relations, technology and regulation. Leveraging Pageant’s wealth of data and news sources, and with access to the HFM network’s vast membership, Insights is uniquely positioned, offering exclusive surveys and expert commentary. To learn more, visit HFM Insights.