Are Inst’l Ops a Make-or-Break Burden? Yes, Deimos Says

Gemini Hedge Fund Services, LLC (Gemini Hedge) President, David Young was quoted in the Fund Fire article, “Are Inst’l Ops a Make-or-Break Burden? Yes, Deimos Says”.

High institutional operational overhead is an increasing burden amid a challenging fundraising and asset retention climate for hedge funds, but market watchers say that a recent hedge fund closure blamed in part on such costs still may be an extreme case.

Investors looking for institutional level experiences amid ongoing pressure on fees have set up high – and maybe unrealistic – expectations for lean hedge fund managers that are nevertheless able to handle strong compliance, technology, staff and services. The costs of running an institutional-quality fund can run over two times the amount of other funds, estimates David Young, president at Gemini Hedge Fund Services, who increasingly sees all investors looking for such a high-end experience.

“To meet the requirements of an institutional investor you have to have complete redundancy,” he says.

“When you look at the amount they [Deimos] were managing, and the quality of the staff, it was a high quality team, there’s an expense related to that,” Young says. “Economically they probably needed a continued inflow of capital and we are in an environment where things are moving slow.”

To read the full article, click here.



How to Run a Smooth Quarter-End with New Apps

Watch today's Weekly to see the new apps to help you run a smooth quarter-end, and learn more about personalizing your own client portal video.

The post How to Run a Smooth Quarter-End with New Apps appeared first on Orion Advisor Services.


Sail Away from the Safe Harbor

Content provided by Robyn Murray, Freelance Writer


John and his wife, Kristen.

John Welch grew up in a small, rural town in Maine where most of the industry was concentrated in logging and farming. Neither held any interest for him, and as soon as he could, he left.

More than 20 years later, he knows he made the right choice.

“Use your head, not your hands”

Eastbrook, Maine has a population of about 400 people. About 150 miles from the densely populated southern coast and just a few miles inland from the Gulf of Maine, Eastbrook is isolated but beautiful. It’s surrounded by forests of fragrant balsam firs and stretches of lakes and ponds where families go kayaking and birdwatching. As a child growing up, Welch spent hours outside exploring the acreage where his family’s farmhouse stood and the nearby woods and lakes. It gave him a sense of creativity and freedom and a connection to nature that never left him. But he always dreamed of something more. His father, who worked for the local power company, told him to remember one thing when it came to his future. “Dad always told me to use your head, not your hands to make a living,” Welch said. “That was instilled in me from a very young age.”

Always interested in numbers, Welch enrolled at the University of Maine, a small campus of fewer than 10,000 students on the banks of the Stillwater River. He majored in finance and built lifelong friendships there, but he was still looking for more. “I couldn’t wait to get out to a big city and just go, go, go,” he said.

As soon as he graduated, Welch headed back to Eastbrook. In two days, he’d packed his bags and moved to Boston. “I just wanted to figure things out,” he said, “to challenge myself and get my career going.”

It was a challenge. An expensive and competitive city, Boston had a lackluster job market at the time and sky-high rents, particularly compared to Maine. But the challenge only motivated Welch to work harder. “I just pushed myself to do more,” he said, “to outwork everyone else.”

After six months of living on a friend’s couch, Welch got a tip that financial services firm, Sun Life of Canada, was hiring. He was temping for an insurance agency at the time, and he jumped at the opportunity. He got started and over the next three years was promoted several times until he took a position at MFS Investment Management as a sales rep, one he quickly realized was a good fit. Today he’s been in sales for 20 years and is the Regional Vice President of Sales at CLS Investments where he covers 10 states in the Northeast. He’s on the road four days a week, and he loves the constant change of scenery. “It’s never boring, always exciting and changing,” he said. “I like change, I know it’s a constant, and I really thrive in that kind of environment.”


John at his home in Main.

Welch still goes home to Maine often. When he visits his family, he finds them waiting for him, financial statements at the ready for his advice and counsel. He says his father is proud of what he’s accomplished in his career and happy he took his advice so many years ago. “I’ve grown as a person,” he said. “I’m more than just this naive kid growing up in a small town in Maine.”

While he’s glad he left and got the opportunity to experience a different life, Welch says he appreciates his small town roots now more than he did growing up. A few years ago, he bought a house on a lake near his old home, and he brings his two sons there often. “It’s a special place where they get to be kids, he said. “They get to live a life of freedom.”


John with his sons Jack (age 9) and Parker (age 7).




New Quarter-End Dashboard Gives You the Keys

New Quarter-End Dashboard

We rolled out a new Quarter-End Dashboard in our most recent software release, and it will change the way you prep for QE. Find all the details here.

The post New Quarter-End Dashboard Gives You the Keys appeared first on Orion Advisor Services.


A Better Way to Buy Integated Advisor Technology

    Read this week’s blog about how to create an engaging newsletter Learn more about the new software bundle options for integrated advisor technology Sign up for an event next week: Tax Center app, Rounding Logic (Trading) or Integration Spotlight with CAIS Watch your inbox Monday morning for your invitation to the Orion Quarterly Technology Update   0345-OAS-9/21/2016

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The September FOMC Meeting

Financial charts abstract business graph and exchange rates 3d background

Financial charts abstract business graph and exchange rates 3d background

Content provided by Josh Jenkins, CFA, CLS Portfolio Manager

Why a Hike Here Should Not Matter to Long-Term Investors

The financial media has been focused on whether or not the Federal Open Market Committee (FOMC) will move to increase interest rates this week. Does this mean that long term investors should also take notice? Does an additional 0.25% hike represent a shift in monetary policy? And should this affect the long term outlook for the bond market?

The chart below provides some historical context to the scale of the potential move. The federal funds rate, the benchmark rate that has been used to control monetary policy, is currently being managed in a range of 0.25% – 0.50%. We can see that even after the Fed increased the level of this benchmark rate last December, it is still considerably below the level found in any other cycle going back to the 1960s. The same will hold true if rates are increased at the September meeting. Since the 1960s, the effective federal funds rate has averaged approximately 5.0% and peaked as high as 19.1%. Clearly, even after another 0.25% increase, monetary policy would be considered extremely accommodative.


Many are fearful about what a hike in September will do to returns in their bond portfolios. If people are panicking about this small move, then surely portfolios must have been obliterated by the seismic shifts that have occurred in the past. Fortunately for us, this has not been the case.

We analyzed returns of intermediate-term government bonds going all the way back to the 1920s. What we found is the performance of bonds over longer-term horizons has been truly impressive. The annualized return over any three-year period has been positive more than 99% of the time. In the few instances it has been negative, losses were hardly devastating at just -0.2% on average. Performance was even more impressive on a rolling five-year basis, where they were positive 100% of the time with an average gain of 5.4%. Is also interesting to note that bonds have outperformed the stock market since the Fed increased rates last December.



Ultimately, the Fed’s decision at the September meeting should have no impact on the long-term investor. A move here would not represent a large shift in monetary policy. Even if it did, history has shown us that the bond market has an overwhelming tendency to be positive. So tune out the noise, stay disciplined, and stick to your long-term plan.



How to Create a Newsletter That’s Worth Reading

Newsletter that's worth reading

Seven simple steps to creating a newsletter that's worth reading. Read today's blog to see how your client communication lines up.

The post How to Create a Newsletter That’s Worth Reading appeared first on Orion Advisor Services.


Gemini Alt wins Hedgeweek USA Award for Best North American Managed Account Platform

Representatives from Gemini Alternative Funds were on hand to accept the award at a ceremony in New York City on 15 September 2016.

Institutional investors and fund managers who read Hedgeweek voted online to choose winners of the publication’s annual awards. Gemini Alt’s dedicated managed account offering and its Galaxy Plus Fund Platform offering received more votes from these audiences than any other contender in the North American managed account platform category. Gemini Alt’s platform was launched in November, 2013 and services close to USD 700 million in assets.

“We are committed to providing an institutional level experience with transparency, frequency of liquidity and depth of reporting  for investors who diversify their portfolios with alternative strategies,” says David Young, president of Gemini Alt. “The fact that institutional investors and fund advisors from across the industry selected us to receive this award means a great deal to us, and we are grateful to Hedgeweek and its readers for recognizing our efforts to create a lower-cost and more flexible solution for investing in alternatives.”

Click here to read the full press release.




The Orion App You’ll Love When You Need It

We've got a new Orion app you'll love when you're being audited. Also in today's Weekly: a recap of Fuse 2016 and new webinars from Orion and partners.

The post The Orion App You’ll Love When You Need It appeared first on Orion Advisor Services.


Gemini Alternative Funds & IASG Alternatives Announce Technology Integration

Software Integration Enhances Alternative Investment Experience

The Gemini Companies announces that its affiliate, Gemini Alternative Funds, LLC, has completed a software integration with IASG Alternatives LLC. As part of a strategic relationship, prospective Gemini Alt investors will have access to the IASG Alternatives managed futures database without leaving Gemini Alt’s Galaxy Plus managed account portal. IASG’s database will allow Gemini investors to be able to combine investment choices, adjust notional funding levels, and view correlations between advisors.

“Our strategic relationship combines the broad array of alternative strategies offered through the Gemini Alt managed account platform with the portfolio-building experience and technology of IASG’s managed futures database, and delivers all of them to prospective investors through Gemini Alt’s website,” said Andrew Rogers, Chief Executive Officer of The Gemini Companies. “We look forward to working with IASG to help investors make well-informed alternative investment decisions.”

To read the full press release click here.