Wall Street Letter VOL. XLV, NO. 30 - Sept. 23, 2013 | Page 4

NEWS

according to Jerry Waldron, director
of risk and portfolio analytics.
Waldron, who has been working
with Woodbine for two months,
said the company has one client so
far. Eight more have shown interest,
but Waldron said the consulting
firm is moving forward cautiously
due to the nature of the client relationships.
“We talk to the client to understand the specific detailed basis
behind motivations and issues being
experienced,” said Waldron. “I will
develop a relationship with clients
so that we are continually improving
their investment process.”
The consulting and research firm
is applying the risk management process for firms to support the investing
process, according to Waldron.
“Risk management usually gets siloed into a control staff function, be04

ing viewed as a cost of doing business
and not as contributor to decision
process,” said Waldron.
Waldron, with the support of
Woodbine staff, aids investment
managers to rout out sub-advisors
that create index redundancy by replicating active management fees.
By clearing out sub-advisors that
are not performing, Waldron ensures
that only active management subadvisors that pick out commonly
held stock remain by looking at active
management flows and correlating
which sub-advisors are effectively
discovering and trading names that
are commonly held.
“Our work helps the manager
choose which sub-advisor to allocate
money to and negotiate better fee
structure and refine investment mandates,” said Waldron.
He noted that managers and sub-

advisors that replicate will become
a costly expense that doesn’t yield
value.
POST-TRADE

Spending on ops
likely to increase
The amount of money firms spend
on their operational tasks is likely to
increase in the near future, according
to the preliminary results of a
compensation survey undertaken by
Advent Software.
During a panel discussion to
review a preliminary set of responses,
members of the Advent Users Group
noted 71% of respondents indicated
they plan to increase their spending
on operations. Just 6% of respondents
said they will decrease their spending

PEOPLE MOVES

Allston Holdings has hired Nancy Stern as executive vice-pres-

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