Skyline Capital cherry-picks Derivation software components to achieve best of breed platform
Skyline Capital Management LLP, the award-winning Emerging Markets focused equity specialist, has chosen Derivation Software to strengthen and enhance its portfolio management and portfolio accounting infrastructure.
Skyline, founded in 2010 by Geoffrey Bamber and Vernon West, is a London-based Emerging Markets specialist with growing assets and a strengthening profile within the investment community. In 2013, they won Hedge Fund Review’s Best Sub-$100m Alternative UCITS Fund and were named HFM Magazine’s Best Newcomer.
Skyline is now using Derivation to handle its middle and back office functionality with full integration to a CYMBA Technologies order management system. Previously, Skyline used an accounting system linked to CYMBA.
Hedge fund Managers face an ever more complex technology market with a jigsaw-like arrangement of system capabilities and functional coverage. Skyline’s selection of a ‘best-of-breed’ combination seeks to deliver a technically more capable solution than equivalent ‘all-in-one’ systems.
The build out of Skyline’s technology to institutional standards marks the preparation for the next phase in their growth and is in line with continuing increases in AUM and a deepening of their client base.
Skyline’s decision also comes at a time of growing momentum at Derivation; over the last two years, the software vendor has expanded internationally and invested heavily in product development, winning recognition for new middle and back office functionality which can be integrated individually or as part of a complete end-to-end Derivation platform.
Derivation is increasingly on the radar of Prime Brokers and funds that are launching or looking to change their incumbent systems. Established clients range from start-ups to larger managers, including large multi-strategy funds.
The Derivation-CYMBA integration was accomplished in stages, following a timetable determined by Skyline’s robust operational and risk management procedures. Derivation performed a parallel run for 3 months before switching over.
A key feature of the software integration was the bespoke development work which Derivation provides to all its customers as part of its free software implementation process. This enabled a true partnership to form between the fund and the software vendor, with Derivation developers working alongside the Skyline team to further streamline the fund’s workflow by adding customized functionality to the software.
Skyline also selected Derivation’s in-house hosting, allowing the system to be deployed instantly with no infrastructure overhead or hardware costs.
Andrew Brown, Skyline COO, said ‘In building out our technology profile, we found a tighter fit to our needs through a combination of high quality software components which were then carefully and comprehensively integrated. We also took maximum advantage of the additional bespoke functionality and high-touch servicing provided by Derivation.’
Richard Bray, Derivation CEO, said ‘We’re now known as the ‘rising star with a big platform’. That means you’ll sometimes see us providing the whole end-to-end solution for a client or, as with Skyline, a component part of our technology will be cherry-picked. Our integration skill and willingness to provide custom development for a client means we can do either, always ensuring the client gets the workflow and functionality they need.’
- Skyline Capital Management LLP is a global equity specialist focusing on companies based in or substantially exposed to Emerging Markets. The funds they manage aim to generate superior risk adjusted returns through stock selection, portfolio positioning and active shorting (where applicable). The funds have a diversified investor base comprising institutions, endowments, banks, and high net worth individuals.
- Derivation Software provides market-leading integrated accounting, trading and risk management solutions for the capital markets industry. Scalable to accommodate from one desk start-up hedge funds to the largest investment banks, Derivation’s extensive, mature functionality allows for a seamless front-to-back workflow. Clients also benefit from an unrivaled, immediate access to motivated systems experts from Derivation’s support offices in Hong Kong, London and New York.
- CYMBA Technologies is a supplier of Decision Support / Portfolio Management, Compliance (Pre and Post Trade), Order Management and Trading solutions for the Buy Side Investment Management community. CYMBA Technologies solutions are used by Hedge Funds, Wealth Managers, Pension Funds, Institutional/Asset Managers, including some of the world’s largest Investment Management firms.