In today’s turbulent markets, fragmented systems are costing alternative managers valuable opportunities. Discover how a unified EMS delivers the speed, precision and control needed to capture alpha and outpace the competition.
As economic uncertainty and persistently high interest rates challenge traditional asset classes and investment strategies, investors are increasingly allocating capital to alternative investments.
Alternatives offer a unique potential for returns relative to traditional stocks and bonds. Specifically, certain hedge funds have demonstrated the ability to generate alpha through active strategies, exploiting market inefficiencies by buying and selling investments at opportune moments.
However, this opportunity comes with its own set of pressures. In a time of increased fee pressure, the need to deliver consistent alpha is high, requiring alternative managers to execute strategies with unparalleled speed, precision and reliability. However, often, managers rely on aging, fragmented systems that struggle to keep pace with the market's demands.
In this post, we’ll explore the trends driving the shift toward alternative investments, the growing challenges faced by managers and why adopting an integrated execution management system (EMS) is now essential for maintaining a competitive edge in turbulent markets.
Active Trading Strategies: Capturing Edges in Liquid Markets
Alternative managers have choices when defining their active trading strategy: liquid or illiquid instruments. While illiquid markets may offer wider spreads and larger profit windows, liquid markets present different challenges — and for many, a greater reward.
In liquid markets, where buy and sell prices are often razor-thin, success depends on consistently capturing small edges. Capitalizing on these small, short-term market moves requires a hands-on approach that includes managing positions on intraday or multi-day timeframes, leveraging volatility and exploiting market inefficiencies for profit.
To succeed in liquid markets, managers need speed and precision, as well as robust infrastructure capable of supporting the real-time data processing and execution required to capture every small edge.
The Challenges Fragmented EMS Technology Creates for Alternative Managers
As alternative managers compete to capture fleeting edges in today’s highly competitive markets, many are frustrated by fragmented systems that slow their reaction time, create bottlenecks and ultimately undermine their ability to capitalize on opportunities.
These disconnected workflows and limited liquidity across markets don’t just erode thin margins — they turn fleeting opportunities into missed chances. Here are some examples:
Delayed Reaction Times
The more systems a manager relies on, the longer it takes to process and analyze data. This delays execution and increases the risk of missing fast-moving opportunities.
In today’s competitive markets, where every second counts, these delays often result in missed trades or lower-quality executions, making it difficult for alternative managers to maintain a competitive edge.
Increased Slippage
Fragmented systems force managers to navigate market shifts in the dark, increasing slippage — where prices move before execution. This extra cost doesn’t just affect individual trades; it accumulates across a manager’s entire portfolio, eroding profits with every delay.
Missed Arbitrage Opportunities
Seizing price discrepancies across venues and asset classes requires seamless execution. Yet fragmented systems prevent alternative managers from acting in sync, turning potential arbitrage opportunities into missed chances and foregone profits.
Higher Transaction Costs
The lack of a unified view can lead to suboptimal routing and execution, driving up transaction costs.
In today’s market, where every second counts and precision is key, these inefficiencies add up. Delays, higher transaction costs and missed opportunities all contribute to eroded performance, tighter margins and a competitive disadvantage for alternative managers.
The Unified EMS: Empowering Alternative Managers to Execute Faster, Smarter Strategies
As alternative managers strive to squeeze out every basis point in today’s competitive markets, success increasingly depends on an integrated execution management system (EMS) that delivers speed, precision and control over trading operations.
A unified EMS empowers managers to act faster and smarter across multiple markets and asset classes by centralizing data, liquidity and execution workflows. Advanced trading tools—such as smart order routing and algorithmic execution—optimize performance, ensuring every trade is placed efficiently and at the best available price.
Here’s how a modern EMS directly supports the active strategies alternative managers rely on:
Accelerated Execution
In volatile, fast-moving markets, speed is everything. A unified EMS cuts reaction times and streamlines execution, giving managers the agility they need to capture fleeting opportunities before they disappear — and to minimize costly slippage.
Seamless Multi-Asset Trading
Switching between disconnected systems slows execution and introduces risk. Whether trading equities, fixed income, derivatives or digital assets, a centralized EMS allows managers to execute seamlessly across asset classes, reducing friction and boosting operational efficiency.
Consolidated Multi-Broker Liquidity
Maximizing returns often requires accessing liquidity from multiple brokers and venues. A unified EMS aggregates this liquidity in one platform, helping managers route orders smarter, execute more efficiently and capture more value from trades.
Real-Time Analytics and Risk Insights
Active strategies demand real-time visibility. A centralized EMS delivers consolidated market data and trade analytics, allowing managers to monitor performance, assess risk and adapt strategies on the fly — with confidence that they’re seeing the full picture.
RealTick: Powering Active Strategies for Alternative Managers
In today’s competitive markets, every basis point counts. Pursuing small, incremental advantages can make the difference between outperformance and lost alpha — while inefficiencies from fragmented systems can quickly erode hard-earned gains.
To succeed in this environment, alternative managers need confidence that their technology can keep pace — helping them analyze markets, manage trades and adapt to changing conditions with speed and precision.
SS&C’s RealTick delivers that edge.
By combining real-time market data, smart order routing and advanced charting with seamless multi-asset class support, RealTick empowers managers to make informed decisions and execute swiftly.
With access to centralized liquidity and sophisticated execution tools, managers can minimize inefficiencies, reduce costs and capture more value — all within a single, unified platform.
Ready to Explore the Benefits of an EMS for Your Active Trading Strategy?
Stay ahead of the competition — RealTick can help you execute smarter, minimize costs and capture more alpha in today’s dynamic markets. Learn more about the essential role of the EMS or contact us to start the conversation.
