In a recent podcast I heard that “a penny for your thoughts” is now $2 for your privacy. Two Harvard Business School professors authored a case study to illuminate the digital privacy issues that students will face as newly-minted MBAs. The case emerged from observations that business managers say they “care about privacy” while many “stop short of… actually doing something about it.” Research by the authors showed that 48% would sell their privacy for only $2. This contradicts consumer interviews revealing pervasive paranoia. The professors think the concern is largely driven by ambiguity: Who is collecting what data; and what are they doing with it? In a familiar twist the Google spinoff at the heart of the case study is described as having a “murky” revenue model. No one is certain how they are making money. For most digital platforms if you are not a client you are likely the product.
The case study sparks classroom discussion of privacy topics familiar to the fintech industry – da...
January has been a record month with AlphaPipe® clients completing thousands of custom information requests. While built to support client-specific information needs, our platform was designed to also support standardization where industry consensus emerges. First published in 1997, the document-based AIMA DDQ has become the leading industry standard. I participated in AIMA's recently completed initiative to modularize the document templates and in November 2017 AlphaPipe® entered into a license agreement. Now, we will build on AIMA’s two decades of template development and provide digitized versions integrated with AlphaPipe's proprietary response evaluation tools in a highly secure environment. AIMA is a powerful example of the efficiencies made possible by industry collaboration and we are excited to add this contribution to our innovative technology so clients and users can fully realize the benefit of digital diligence....
AlphaPipe adds to our GAIM sponsorship history with GAIM Ops West Coast in Rancho Mirage, CA on October 24-26. Our CEO will be onsite to engage with clients and industry colleagues on a range of governance, risk and compliance topics within the hedge fund and private equity fund investing community to inform our client support and ongoing platform development. Contact us to learn more about how our clients leverage AlphaPipe to systematize a range of monitoring and diligence processes and how we can solve your needs. We will be available onsite at GAIM and in meetings we are scheduling in northern and southern California that week.
Opening Our Second Office
AlphaPipe’s dynamic culture reflects the vibrant environment for startups that is our WeWork office in Lower Manhattan. Active collaboration across client-facing specialists and engineers drives our rapid platform development which is 100% in-house. Opening a second WeWo...
Order maintained in four sectors with a number of interesting trends to note. The latest update in the AlphaPipe/HFMWeek Service Provider Snapshot has seen order maintained at the summit of the provider tables in the second quarter, with administrator SS&C GlobeOp extending its lead in both the number of funds serviced and regulatory assets under management ( RAuM). Despite a tough start to the year, hedge funds managed to rectify negative performance in the second quarter, making returns of 1.8% over three months, according to the HFRI Fund Weighted Composite index, taking YTD re- turns to 1.2% at the end of June.
In recognition of our growing European client base AlphaPipe will be sponsoring and attending the combined GAIM and GAIM Ops events in Amsterdam later this month. The event will be held at the Hotel Okura, 20-22 June.
We look forward to seeing some of our clients and industry partners in Amsterdam. AlphaPipe currently serves the information and workflow management needs of several European diligence and monitoring teams within leading investment consultants, funds of funds and family office organizations.
Large moves in prime brokerage and custody services see provider tables changing in the first quarter while recent studies have shown little movement in most of the categories, 2016’s first quarter installment of the HFMWeek/AlphaPipe Service Provider Snapshot has shown a relatively large amount of change. The three-month period was a tough one for hedge funds as the HFRX Global Hedge Fund Index fell -1.9%, marking its worst start to a year since the beginning of 2008.
Many FinTech services cite the SOC 2 reports of their host provider as full evidence of their security. However, such SOC 2 reports need to come in pairs -- one for the host provider and one for the individual firm -- to truly examine the security controls clients are relying on.
AlphaPipe is proud to announce the successful completion of its third annual SOC 2 examination. The Report on Controls at a Service Organization Relevant to Security and Availability (Type 2) for the period April 1, 2015 to March 31, 2016 is available to all AlphaPipe users as part of our commitment to maintaining a robust, institutional-caliber service for the private funds investing industry.
This report reflects continued enhancement in our examinations as we added the Availability trust principle given many clients are beginning to use AlphaPipe as the primary repository for key information, insights and documents related to their ongoing diligence and monitoring of external managers.
I read one of the best fintech cautionary tales this weekend courtesy of Gregg Schoenberg of The Financial Revolutionist and Westcott Capital. Gregg warns of disruptor hubris, excess hype, and incumbents mid-crossing without a plan. While we have always thought AlphaPipe has the potential to disrupt around the edge, we have shied away from selling unicorn fairy tales and focused on workhorse innovation in active collaboration with existing players and technology within the private funds investing universe. From the article: "If we had a dollar for every time we’ve reheard the metaphor comparing banks to dinosaurs or to the taxi services being put out of business by Uber, we’d have enough to own a unicorn. Underpinning this attitude is the idea that fintech start-ups will somehow obliterate the incumbent financial services industry in the next few years."
Read more of Gregg's thoughts through the link below.
Congrats to our team, partners and clients for contributing to private funds investing's best workflow management service as recognized yesterday at HFM Awards 2016's US Technology Awards! We're not resting on our laurels as the latest features extending our workflow management capabilities into all your diligence and monitoring needs will be released this month. Contact us to learn more about our current offerings and imminent enhancements.
There was little change in the latest service provider tables during another quarter of negative hedge fund performance--
The final three months of 2015 saw little movement in the service provider stakes with most firms retaining their third quarter positions, according to the latest HFMWeek/AlphaPipe Service Provider Snapshot. Despite a decent start to the quarter, which saw hedge funds enjoy respective gains of 1.7% and 0.2% during October and November, in December they recorded a -1% fall according to HFR data, mirroring the HFRI Fund Weighted Composite index’s annual result of -1%.