As iPhone Applications for Capital Markets Emerge, Hedge Funds First to Adopt

Now that Apple has improved security and enterprise connectivity capabilities for the iPhone 3G, industry specific applications are starting to emerge. One of the first iPhone applications for the securities industry is a tool that provides real-time portfolio management called Lab49 Capital from Lab49, Inc. a technology consulting firm that builds solutions for the financial services.

The application helps buy-side portfolio managers track the performance of their assets in real time, and "slice and dice" positions, P&L and changes in the portfolio across multiple dimensions such as strategy, industry, country and manager, according to Marc Jacobs, director at Lab49. (See a Lab49 Capital ScreenCast demo.)

"For a portfolio manager, they don't spend all of their time at their desks," Jacobs adds. "But their mind is always 'where are we right now?' Allowing portfolio managers to such visibility into their fund is a key aspect that this application provides. Lab49 Capital is inspired by several projects we have going on with a number of firms. Lab49 Capital is a representation of actual work we are doing with some of our clients."

"The new iPhone platform presents significant opportunities to buy-side and sell-side firms," said Jacobs, in a statement. "The extension of financial applications to workforces across multiple floors, buildings, geographies, and client sites; faster response times to complex financial, legal and technical events; and quicker time to market, all make for a new wave of applications that can actually be applied throughout the financial enterprise."

Still, most bulge bracket firms are sticking to the Blackberry, for now, while buy side firms and hedge funds are leaping their sell side counterparts in mobile capabilities. "We are seeing stronger demand on the buy side," says Jacobs. "The larger sell side firms are still waiting it out. The interest is coming from the the buy side and the hedge funds because many times they are more flexible. It also really helps establish them as being on the leading wave" of technology. "The iPod touch and the new iPhone is making it very attractive."

While Lab49 Capital does offer real-time snapshots of data, it doesn't offer trading capabilities. "You are bound to see actual trading applications on the iPhone," Jacobs says. "But I don't see that is a growth area. Those are going to be minor applications. Many of the Web-based trading applications are for retail [investors]. We are looking at the enterprise with Lab49 Capital. I don't see traders executing on the iPhone at this time." Greg MacSweeney is editorial director of InformationWeek Financial Services, whose brands include Wall Street & Technology, Bank Systems & Technology, Advanced Trading, and Insurance & Technology. View Full Bio