A range of pressures since the onset of COVID-19 are predicted to compel fund managers to diversify away from treasuries, money market funds and traditional banks towards ultra-liquid banks for holding unencumbered cash balances.

While no one is exactly certain about how the COVID pandemic will affect the world, be it economic, socially, environmentally or otherwise, early indications all point to the notion that what was business as usual prior to the pandemic will either take a significant turn or, in many cases, cease altogether.

Having won the award for ‘Best Administrator – overall’ at the HFM Global European Services Awards 2020, Jay Peller (Head of Fund Services, Citco Fund Services (USA) Inc.) discusses alpha generation and the effect technology and the current pandemic is having on the broader hedge fund industry.

The current market downturn further strengthens the need for managers to focus on their core investment business and reduce operational risk by outsourcing non-core functions to trusted service providers.