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Implementing a modern research management system (RMS) for better decision-making.

Client’s Background

• Tier One launch out of Third Point
• L/S international launch out of Australia

The Challenge

Implementing a flexible, scalable and centralized research management solution that ensures their vision has the highest probability of success.

These deeply experienced fundamental founders searched for the most efficient and effective solution to execute their visions. During this process, they reviewed and trialed multiple solutions from vendors, such as Alpha Theory, Verity, Calibre, Bipsync, as well as solutions from incumbent terminals. In each case, they had firsthand experience and were comfortable with other solutions. To give a sense of the depth of the requirements, which are well beyond traditional solutions, commentary from one CIO:

• We are looking for software that can help us manage our data and investment process, to provide a historical record for future decision interrogation and process improvement, and to give comfort to clients around the repeatability of our process.

Specifically, while each fund is unique, both have seasoned, successful managers with a strong track record at a large institution built on a disciplined investment process. For them to scale their own funds, they needed a solution that would empower their team to make successful decisions at the highest levels. Each firm relied heavily on fundamental analysis, which included a mosaic of internal and external intelligence, from many different sources, as well as specific methodologies for valuation analysis, position sizing and risk management. Critically important was fully leveraging (including with AI) the deep base of internal intelligence (Investment thesis, research notes, meetings, financial models, forecasts, etc.), as this was at the heart of their decision-making, and the selection of the “right” long term partner, they envisioned, would be an important part of their success

The Competition

Each vendor went through an initial look, and a few were chosen for a deeper review, including in some cases a trial.

• The flexibility to address multiple unique requirements from each fund was a key decision point for each fund. No other firm had both breadth and depth.

• EDS went well beyond a trial, and proved a full production solution, before a commitment was made.

  • During this process, EDS demonstrated both configurability in how the platform was organized, as well as proving ease-of-use and flexibility to data inputs.
  • Critical test areas included the creation of note templates for multiple meeting types, automated financial model ingestion, as well as analytics to provide feedback on where they succeed and where the blind spots are.

The EDS Research Management Solution (RMS), including Portfolio Construction in one case

A high performance, real-time, easy-to-use and configurable Research Management (and portfolio construction) solution from EDS, built around their vision and investment process – implemented with precision, quickly and affordably – streamlining research processes, providing valuable feedback, and supported by a highly experienced team of former investment professionals and quantitative analysts.

The Result

The firm has a centralized, yet flexible solution for Research Management, while working seamlessly with other in-house critical processes and with the ability to use the same platform for other workflows as they needed.

1. A Research Management solution for Decision-making – With their RMS solution aligned with their vision, they are able to maximize the value of their research and intelligence to enhance decision-making and drive continuous improvements. Specifically, all internal and external content is captured, in real-time and can be configured and organized multiple ways, into templates and/or powerful dashboards, for real-time and historical reporting and analysis.

2. Time savings and data partner optimization: EDS replaced what would have taken multiple, separate processes, including spreadsheets and possibly multiple vendors – while providing a user-friendly, productive environment with a strong feedback loop. In one case, while EDS was more expensive than one of the other competitors, it was chosen because of its long term strategic value.

3. Research Management on their terms: With EDS, the value of their research process and data (from multiple vendors) improved, based on:

  • A simple and intuitive application that any member of the investment team could use.
  • It is uniquely configurable to their firm, including to each user, so there is no change in behavior, and is instantly productive.
  • The ability to replace cumbersome shared excel dashboards/comp sheets with a configurable, database backed environment that surfaced ideas, opportunities and risks faster and with greater efficacy.
  • The ability to identify all inputs related to decision-making in a few clicks, helping the investment team gain valuable and actionable insights in real-time.

4. Rapid implementation and strong compliance: The team was able to modernize and digitally transform their investment process, with little friction, creating greater accountability and transparency within the investment team. Importantly, all Intellectual Property (IP) was secure and, in-house, achieving “best practices” compliance and reducing leakage due to any employee turnover.

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