Investments by hedge funds into technology advancement is set to increase in the coming five years, as more executives within the industry become concerned about the impact of technology on their competitiveness. A new report finds that they will leverage a broad range of investment strategies to meet needs, from building their own systems to outsourcing. Cyber security, particularly among large firms, is set to see increased focus and investment.
Hedge funds are, like wealth managers and the financial services industry more widely, seeing the effects of digitalisation on their wider business. In a new report from KPMG, the professional services firm explores current trends around technology and innovation affecting the industry. The the report involved around 100 hedge fund leaders and executives, who together represent around $300 billion of assets under management (AUM), of the total hedge fund market of around $2.9 trillion.