SEI, the US-based investment and technology firm, has rolled out a new front-office liquidity management tool for hedge fund managers, catering for demand for better data on liquidity and information about whether there is enough cash to cover investor redemption needs.

The product allows asset manager clients to track, analyse, and manage the portfolio positions of their funds as well as investor redemption provisions. Recent events have shown that such information is vital: in 2008, investors scrambled to pull money from hedge funds, but often found this was difficult, if not impossible, as fund managers imposed gates and other restrictions to protect fund liquidity.

“Amid the credit crisis and the resulting mass redemptions over the past several years, managers are demanding a more transparent and holistic view of their liquidity position,” SEI said.

The product is called Total Liquidity Management™ , using technology from Comada, a firm operating in the hedge fund and associated investment sector.