Lydian Asset Management - Bailey & Associates

Lydian Asset Management

08 JULY 2020
Lydian Asset Management




Lydian Asset Management was formed in 2001, when former Bankers Trust Fixed Income portfolio managers raised $300M to form this new Convertible Arbitrage hedge fund.



  • Build bespoke portfolio and risk management tools
  • Design automated back office processes
  • Increase efficiency
  • Network the trans-Atlantic offices
  • Build DR/BC solutions


The Mission

With one office in Westport, Connecticut USA and the other in London, data between the offices was shared via email, and the company was managing its portfolios across shared spreadsheets. The current system processes were not suited to expansion or security and needed modernising.


What our Associate did

Systems Design

Starting with an overview of what the company wanted to achieve, an IT Roadmap was drawn up. This included a re-design of the portfolio and risk management systems, back office automation systems, a security review, disaster recovery planning and business continuity tools.

Application Development

One of the key achievements of the project was the bespoke software that was designed and built from scratch with our Associate. Off-the-shelf packages were available, but none of them provided the functionality the company required. By building bespoke portfolio and risk management systems, the company had full control over the features and functionality the wanted to use.


With custom-developed back office software, much of the back office transaction processing was now automated. Our Associate built systems that managed trade reconciliation, funding payments, forex balancing and trade hedging, which helped keep staffing head counts low for the business, and therefore increased efficiencies of the current staff.


Having four offices (in London, New York, Westport and Redbank, New Jersey) meant keeping data in sync across all sites was an important and complex task. At the time of the project, the concept of data centres was new and a dedicated fibre line was grossly expensive and outside the client’s budget. Our Associate conducted research to scope out the fastest internet connections for each office, and subsequently connected them all over VPN appliances.


The results

The new systems that were designed and built by our Associate helped the company grow from $300m under management at the outset to over $3bn at its peak.

Efficiency wise, the company’s total head count never exceeded 24 members of staff across four offices. The ease of use of all new systems also meant that staff were able to jump across roles to help fill in when colleagues were on holiday or off work; it wasn’t uncommon to see back office staff managing the portfolios and the IT staff performing back office tasks after the systems were implemented.

The office connectivity gave the company business continuity, with every office backed up and synchronised across the network continuously.


In order to deliver a comprehensive overview of our Associates experience and to detail the service that they can deliver, some of our case studies will contain work carried out by our Associates prior to joining Bailey & Associates. Please note that we are not able to publish every case study, so if you would like to ask about our experience in a specific sector or industry, please contact us directly.


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