CO-SOURCING CYBERSECURITY: APPLYING AN EMERGING HEDGE FUND BUSINESS MODEL

Since the global financial crisis of 2008-2009 and the Madoff Ponzi scheme (collectively, the “Financial Crisis”), both regulators and investors have significantly increased their demands that hedge fund managers (“HFMs”) develop and maintain an institutional-quality infrastructure. Unfortunately, at the same time, the revenues available to most HFMs to build and support the required institutional infrastructure have diminished, as both fees and AUM have been compressed. The inverse relationship between these two realities has created significant barriers to entry for emerging HFMs, as well as significant impediments to further growth for small to medium-sized HFMs.

ACA Aponix - Co-sourcing and cybersecurity - final.pdf