Cogent Consulting, a US-based provider of commission management systems, has launched a free version of its web-based HedgeTrak broker review and evaluation service ahead of US legislation to register all hedge funds.
The new service, HedgeTrak Lite, permits hedge funds to conduct a free annual review of trading and research services from brokers and other third-party providers. Cogent says the product will enable hedge funds to handle anticipated registration requirements by the US Securities and Exchange Commission and meet client demands for increased transparency in the use of research and the commission sharing arrangements. Subsequent reviews are available at a nominal charge, the firm said.
In July, the Obama Administration released proposed legislation – The Private Fund Investment Advisers Registration Act of 2009 – which requires hedge fund managers, private equity fund and venture capital fund managers to register with the SEC.
HedgeTrak Lite is based on Cogent’s HedgeTrak and ResearchTrak solutions, which evaluate services from more than 600 brokers and third-party research providers worldwide. Cogent’s reviews assign a score and dollar value for the services provided and produce fully documented written reports.
“HedgeTrak Lite shows that managing research valuation, even for small firms, can be painless and inexpensive,” said Robin Hodgkins, president and CEO of Cogent. “The resultant broker review reports also provide hedge funds with a well documented report that shows hedge fund investors where and how their commission dollars are being allocated, and provides brokers with insight on where they need to improve service.”