Ghost Tree Capital found new ways to grow tall and branch out with Enfusion

Ghost Tree Capital

• Type Hedge Fund
• Focus Long/Short Fund
• AUM Tier $426 million (as of March 31, 2021)
• Client Since 2013
• Profile Founded in April 2013, Ghost Tree Capital is a New York-based hedge fund manager that is principally owned by David Kim. The firm utilizes a long/short equity strategy that focuses on the healthcare industry. Its objective is to deliver consistent absolute returns by aiming to focus on fundamental investments that are often poorly overlooked, maintain a low net exposure, and construct a highly diversified low volatility portfolio.

The prospect of a new strategy and a major systems migration all at once felt daunting. Choosing Enfusion is allowing Ghost Tree to address both challenges confidently. With Enfusion’s quick and seamless implementation complete, they now enjoy the operational benefits of a much larger fund and can plan to launch a new strategy.

Ghost Tree, an eight-year-old long-short investment firm, had achieved substantial success with a combination of homegrown Excel tools and legacy systems. As they grew to a total of six funds, the management team realized that the approach they had been using was becoming increasingly complex. It would become all the more challenging to scale with a second investment strategy because their previous platform was unable to break out portfolios by strategy, making its reported gross and net exposures meaningless. It was time for a change, moving to a total front-to-back solution that would grow with them.

Ghost Tree’s CFO had built sophisticated spreadsheets that supported daily cash and position reconciliation reporting and enabled shadow accounting.

If you start with Enfusion from Day One of your fund launch, the platform just becomes that much better. Having everything in one place means we don’t have to stitch together reports or analyze data from various systems. It makes me wish we had Enfusion from the start.”

But there was a catch. It took a lot of manual data entry and time-intensive work to generate the reports Ghost Tree needed. New accounts and new funds compounded the problem each and every time.

On the trading side of the business, Ghost Tree did not have the functionality it needed to handle pari-passu allocation of trades across its current funds. They needed trades to move much more seamlessly from order to execution to allocation.

Ghost Tree’s vision was to have an end-to-end platform that would eliminate the workarounds they had developed over time without losing the benefits of having tailor-made solutions that they developed to meet their requirements. They also wanted a partner who could help with the heavy lifting of migrating their existing data to a new, seamless platform. Enfusion’s comprehensive, unified platform included a PMS, an OEMS, and full General Ledger Accounting capabilities. Enfusion converted Ghost Tree’s existing reports and helped migrate its data within just eight weeks. As a result, Ghost Tree will be able to launch its new strategy with significantly streamlined middle and back office operations. Using Enfusion is helping the leaves and branches flourish, with a strong but flexible trunk for future growth.

Besides feeling confident internally [with our choice of platform], we are able to pass the feeling of confidence along to investors.”

Benefits and ROI

Enfusion’s integrated, cloud-native platform grows organically along with client needs. Ghost Tree has the tools it needs to run a multi-strategy firm.

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