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Citi Prime Finance’s 2011 IT Trends & Benchmarks Survey
Section 5: 2011 IT Benchmark Data by Hedge Fund Size
Small Funds
: Total IT Spend
• While over three-quarters of small funds spend
less than $500,000 USD on their annual IT budget,
9% spent more than $1 million USD
• Total IT spending for small funds averages
$598,000 USD per year
• As a percentage of AUM, small funds spend
12 basis points on technology
- 4 bps – personnel
- 3 bps – hardware & networks
- 3 bps – software
- 2 bps – data
Small Hedge Fund Benchmarks [Manager’s with AUM < $500 millions USD]
Source: Citi Prime Finance
$500 - $1M
$0 - $500K
$1M - $3M
78%
5%
13%
4%
$3M - $6M
Small Funds: Total IT Spend
27%
32%
18%
23%
Data
IT
Personnel
Software
Source: Citi Prime Finance
Small Funds: IT Spend by Category
Hardware
& Network
Small Funds
: IT Spend by Catagory
• Small funds spend the most proportionately on
software but the least on data, relative to
larger funds
• Almost a third of their budgets were allocated to
personnel—both internal and outsourced. This is
in line with the averages across all fund sizes
Total IT Spend