Forefront Communications

WatersTechnology: Fee Structure Lures Hedge Fund Pier 88 to LiquidityBook’s POEMS

Forefront Communications

Forefront Communications

Late last year, to help improve its trading functions across those four funds, Pier 88 Investment Partners migrated to LiquidityBook’s cloud-based LBX Buyside POEMS (portfolio, order and execution management system) offering.

When Pier 88 launched, it relied on a combination of Bloomberg’s EMSX execution platform or voice orders to route trades to the firm’s brokers. It also leveraged its prime broker’s solution for profit-and-loss (P&L) monitoring, along with those ubiquitous internal spreadsheets to monitor risk limits and reconcile performance.

Jackie Fertitta, Pier 88’s chief operating and chief compliance officer, tells Waters that those practices worked well when it was just one fund being managed, but now that the firm has grown to four, if the fund wanted to provide institutional-quality processes for investors, it became imperative to offer a more end-to-end solution to help ensure trade, audit and risk compliance at a cost that is manageable for a growing firm.

“The straight-through processing of trades—from routing orders, to execution, to settlement and record-keeping—with our brokers, fund administrator and multiple custodians eliminates trade errors and omissions imperative to fully understanding portfolio risks at the start of each day,” she says. “This is an incredibly valuable feature to any portfolio manager.”

Read the full article here.

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