Broadridge Financial Solutions, Inc. (NYSE:BR) has had its solutions platform integrated by the credit hedge fund Prophet Capital Asset Management, according to a Broadridge statement.
Prophet Capital Asset Management is a $2.3 billion structured credit hedge fund that helps manage several asset classes across its broad portfolio focus. By extension, Broadridge Investment Management Solutions’ platform suite caters specifically to hedge funds, asset managers and prime brokers – the integration by Prophet Capital is important as it represents the latest expansion of Broadridge’s solutions into this realm in its bid to grapple with the increasing complexity and rigors of large funds.
According to Kurt Rechner, Chief Operating Officer (COO) of Prophet Capital Asset Management, in a recent statement on the integration: “An established structured credit fund like ours, with a two-decade growth trajectory and an increasingly sophisticated investor base, requires scalable, institutional-quality infrastructure.”
Liquidity Constraints in 2021 – What is the Best Path Forward?Go to article >>
“The Broadridge solution offered out-of-the-box functionality as well as the option for customization to support trading of complex securities – which was key for us – all through a single platform,” he added.
“Our global portfolio management solution enables hedge funds and asset managers to institutionalize their infrastructure and realize significant operational efficiencies by having their order management, portfolio accounting and risk management on a common platform,” noted Bennett Egeth, President, Broadridge Investment Management Solutions, in an accompanying statement.
Broadridge made headlines a couple months ago after SBI Securities, a Japanese online securities trading firm, assimilated Broadridge’s post-trade processing solution across its core fixed-income trades. The post-trade processing solution is already in use globally across nearly 70 markets.
Despite the spreading focus of its business, investors have hardly expressed the same optimism in Broadridge’s share prices over the past two months. Since trading just below a 52-week high of $60.10 in early November, the stock has jettisoned over -14.7% in a little over two months to settle at $50.83 ahead of the market opening on Friday. Owing much to broader market weaknesses wrought by China, Broadridge’s shares are down -5.4% since the new year.