Institutional Investor's Alpha Magazine - November 2007 - (Page 54)

Alpha Awards: Top Technology Providers PORTFOLIO ACCOUNTING I Rank 2007 1 2 3 4 5 1 f order and execution management applications are the vehicles that get hedge funds to their destinations, then portfolio accounting systems are the road maps. The best ones are like a Global Positioning System, able to instantly show the exact position of a fund across accounts using real-time data. It is “you are here” software, revealing how strategies and investments are performing at any given moment. On its face, Portfolio Accounting would seem a stable and established discipline, where brands that rise to the top should stay there year after year. But that is not the case in this year’s ranking, where there is considerable movement. Goldman, Sachs & Co. did not rank last year in the overall list of portfolio accounting providers — the category also included portfolio management — but is this year’s leader in the pure accounting category. Meanwhile, Citco Fund Services, last year’s ﬁrst-place winner, falls off this year’s ranking. Goldman’s rise has been fueled by its ability to tailor portfolio reports to the individual needs of clients — in effect, providing a more detailed and responsive road map. The ﬁrm has spent several years tweaking its portfolio accounting system to allow it to generate highly individualized reports for hedge fund managers, who are notoriously picky about how they want to display portfolio positions and results. “Every fund feels like the way they look at their portfolio is part of their edge,” says Michael Nachmani, Goldman’s New York–based head of product development for prime brokerage and fund administration. “Being able to slice and dice the information the way each fund wants to see it is very important.” Over the past two years, Goldman has created more than 1,000 tailored reports for individual clients. And its customized services have been embraced by hedge funds. Voters rate Goldman No. 1 in all three areas: Software Functionality, Support & Client Service and Technology & Architecture. Repeating in second place, Tradar maintains its strong PORTFOLIO ACCOUNTING 2006 1 — 2 3 — — Firm GOLDMAN, SACHS & CO. TRADAR SUNGARD DATA SYSTEMS ADVENT SOFTWARE LINEDATA SERVICES Rankings in 2006 were for the Portfolio Management and Accounting category. GOLDMAN, SACHS & CO. Michael Nachmani, 32, Head of Product Development for Prime Brokerage and Fund Administration MICHAEL NACHMANI HAS HIS HANDS FULL. As Goldman, Sachs & Co. strives to create the ultimate one-stop shop for daily management of hedge funds, he is charged with determining how the firm’s management software can best meet hedge funds’ needs. “The part that a lot of funds struggle with is the reporting side,” says Nachmani, who has devoted roughly one third of his life to working for Goldman. “We have spent a lot of time over the years working with clients to develop a data model that lets us customize our reporting uniquely with our clients.” He notes that Goldman’s portfolio accounting product is part of a software bundle that includes risk management. But Nachmani and his group still have some major work to do: Goldman’s risk management software does not crack the Alpha list in that category. 00 • INSTITUTIONAL INVESTOR’S ALPHA • NO-

Table of Contents Feed for the Digital Edition of Institutional Investor's Alpha Magazine - November 2007

Institutional Investor's Alpha Magazine - November 2007 Contents Letter from the Editor Longs & Shorts Pension Corner: Patriot State The Good Guys: College Connection Interview: Currency of Change Cover Story: Comeback Kid Strategies: Masters of Art Research Center: Alpha Awards: Top Technology Providers Top Analysts Alpha Bytes: Critical Choice Unhedged: Commentary: Banking on a Bubble

Institutional Investor's Alpha Magazine - November 2007

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