Product Lead
New Investment Warning System
Baupost Group

Led design & development of a system to track compliance constraints on hedge fund investments.

Problem

Hedge funds often had to wait for specific conditions before executing deals. Research for a deal could precede execution by many months, but deals still had to go through compliance and meet other constraints.

Stakes

Executing deals with invalid compliance constraints could result in significant financial and reputational risks.

Discovery

To adapt to evolving regulatory environments and complex investment instruments, constraints on a hedge had to vary. This needed to be balanced against simplicity of use for researchers, compliance staff, and management.

Outcome

Implemented a compliance tracking system, protecting the firm from regulatory breaches and enhancing operational transparency.