Reconciliation for Investment Managers

Investment managers trade across multiple venues, clear through multiple prime brokers, and hold assets at multiple custodians. Each counterparty reports positions and transactions differently — different identifiers, different settlement conventions, different timing. The OMS says one thing; the prime broker says another; the custodian says a third.

For hedge funds running complex strategies — derivatives, short positions, swaps, structured products — the reconciliation problem multiplies. A single trade might touch three systems: the execution management system, the prime broker's margin account, and the fund accounting platform. If any leg is booked incorrectly or settles late, the position breaks cascade downstream into P&L, risk, and investor reporting.

The operations team is caught between two pressures: the front office wants real-time position accuracy for risk management, while the back office needs clean books for NAV and regulatory reporting. Reconciliation is the bridge — and when it is slow or unreliable, both sides suffer. Portfolio managers make decisions on stale data; compliance teams scramble to explain discrepancies to auditors.

Most investment managers have outgrown their reconciliation infrastructure. The tools that worked at $500M AUM break down at $2B — not because the matching logic fails, but because the investigation and resolution workflow cannot scale without proportional headcount.

Your operations team stops being the bottleneck between trading and reporting. Our agents ingest data from every prime broker and custodian, normalize identifiers and conventions, and run the matching continuously. Breaks surface with context — not just "position mismatch" but "likely settlement timing: trade T+1, prime reports T+2, expected to resolve tomorrow."

The front office gets cleaner position data faster. When the PM asks "what do I actually hold?" at 7 AM, the answer reflects reconciled positions rather than yesterday's snapshot plus unverified trades. Risk limits are calculated on accurate data, not estimates.

Scaling the fund — adding a new prime broker, launching a new strategy, onboarding a new asset class — no longer means hiring another reconciliation analyst. It means configuring another data feed and letting the agents handle the incremental volume.