Hedge Fund Lone Pine Capital Opts for SS&C's Form PF Tool

Starting next month, hedge funds with at least $22 billion in assets under management will need to begin filling out Form PF, which is designed to monitor the risks posed to the nation's financial system by hedge funds, private equity funds, and other large private funds.

Lone Pine Capital LLC, a long-short equity hedge fund with nearly $22.7 billion in assets under management, announced plans to use SS&C Technologies' software to help it meet the new Form PF requirements.

[Key Dates for Form PF Reporting.]

SS&C said its Form PF tool is a web-enabled application designed to help firms collect data that must be reported to the Financial Stability Oversight Council (FSOC) on a quarterly basis. The firm added that its tool supports complex fund structures, along with multiple asset types and data sources.

"We have developed and deployed a cloud solution providing funds full access and visibility into the filing, and support with fund operations, valuation, risk and compliance experts," SS&C senior vice president Rahul Kanwar said in a statement.

Starting next month, hedge funds with at least $5 billion in assets under management will need to begin filling out the form. In December, hedge funds with at least $150 million under management will be required to do so as well. Regulators will then use that data to monitor the risks that hedge funds pose to the U.S. financial system, the idea being that they can prevent taxpayers from having to bail them out the way they did with Long-Term Capital Management in 1998.

In addition to hedge funds, private equity funds and other large private funds are also subject to the new requirements. However the data extraction process is expected to be a difficult one for hedge funds, as it will require them to not only answer hypothetical questions like how would they be impacted by a major drop in the S&P 500, but they'll also have to provide complex data points, such as the convexity and duration of their bond portfolios.

As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio