IT spending set to fall below $1bn

As hedge fund managers square up to the most precipitous market challenges in their history, the industry is likely to have to contend with the prospect of less cash, fewer assets under management and slashed technology budgets.

Hedge fund technology spending will drop 40%, from $1.45 billion in 2008 to $882 million through 2009. This is one of the major forecasts made by the Tabb Group in its latest IT report*. The group surveyed 61 US hedge fund managers in the first half of 2008, examining funds' trading and back-office technology requirements and how they will square those needs with difficult market conditions and smaller budgets.

Smaller IT budgets do not mitigate managers' needs for greater trading and