How Optimized Operations Boosted TIG’s Business
Welcome back. Lately, we’ve been talking a lot about demonstrating what a difference an optimized back office can make to a hedge fund’s bottom line. While it’s often difficult to generalize about hard numbers, we know emerging managers and smaller firms in particular can benefit from streamlining workflows, centralizing data flows, and eliminating repetitive manual processes in reporting, accounting and compliance.
But don’t take our word for it. One of our long-time partners, TIG Advisors, recently sat down with us to explain how outsourcing their operations has helped the firm optimize workflows and freed up time for more strategic operations management.
Tiedemann Investment was founded in 1980 by investment legend Carl H. Tiedemann. By the late 2000s, the firm was registered as an investment advisor with the Securities and Exchange Commission, focusing on capital preservation and uncorrelated returns. With approximately USD2.3 billion in assets under management, the multi-strategy manager platform partners with portfolio managers, taking care of their infrastructure needs.
TIG utilizes the full Investment Suite to manage its entire workflow, from portfolio management to trade entry to execution to accounting. “Without systems, and without implementation of these systems, it’s very difficult for a firm to staff and to have an automated approach unless you partner with vendors who have an expertise in it. That’s difficult to build in-house – inefficient, expensive, and you don’t always have an IT staff to deal with it on an everyday basis. Outsourcing to successful vendors is really key to efficiency,” said Michael Fastert, COO, CCO and Chief Legal Officer.
Check out the full video detailing how Eze is helping TIG mitigate those challenges below. Then, scroll down for a few takeaways.
Key benefits of outsourcing, according to TIG
- Outsourcing to successful vendors means you can get by with a smaller staff. TIG has 45 people in the entire operation.
- The right system means you needn’t worry about labor-intensive, repetitive processes for important tasks such as portfolio and investor accounting. A good platform will ensure that your books and records talk to one another, saving you hours of tedious reconciliation work.
- Automating repetitive tasks means you can reallocate staff to think strategically and ask critical questions that can lead to real savings.
- A great system can bring your capacity more in line with larger players.
- The right vendor partner will be an extension of your IT and back-office staff, so you can concentrate on the business of managing money.
The bottom line is, the right relationship will pay for itself, and that’s a key point to consider when you’re comparing the price of the system to the total cost of doing business. Says Mike Fastert, “If you’re sitting there for the majority of the day doing the more mundane things – not that they’re not important, because they are – you’re going to be behind the bigger players because they certainly have the resources. And if you can’t devote human capital to it, then you have to devote systems to it. So by devoting the money and capital towards a system like Eze, it allows your back-office to focus on other things to make up that 50-70 bps disadvantage that you potentially have with the larger funds.” Well said, Mike.
For more details on how TIG and others have used Eze Investment Suite to gain an edge, I encourage you to visit our Case Studies and News pages. We have a lot more exciting news in the pipeline, so please subscribe to keep up.
To learn about Eze Software's award winning investment suite, please visit our applications page.
Michael oversees new sales and buy-side business development in the Americas for Eze Software.
Michael joined Eze in 2000 when he was hired to launch Eze OMS operations in New York. He has held a number of leadership positions, including head of eastern U.S. Eze OMS operations and managing director of global business development. Previously, Michael was a senior associate at PricewaterhouseCoopers. He is a graduate of Boston College, where he received his Bachelor in Finance.