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Algo Risk Reports
Algo Risk Reports meets the increasing need of hedge funds for a cost-effective risk reporting solution, incorporating advanced risk analytics, to achieve regulatory compliance, support better investment decisions, and enhance investor confidence.
In Algo Risk Reports, Hedge Funds have a choice of pre-configured risk reports that are built on Algorithmics’ patented Mark to Future methodology. This allows them to benefit from Algorithmics’ full revaluation approach and sophisticated asset modeling with consistency across a multi-asset class framework, without the need to invest in costly risk infrastructure. Algo Risk Reports allows hedge funds to focus on their core business, while providing the flexibility to seamlessly migrate to the more powerful Enterprise Edition of Algorithmics’ Portfolio Construction and Risk Management for Hedge Funds to meet the challenges of evolving business requirements and growth.
Features and Benefits
Provides hedge funds with a choice of any of three pre-configured comprehensive risk reports:
- Regulatory Reports, to provide risk reports that are designed to comply with present and future regulatory requirements, while supporting appropriate levels of transparency.
- Investor Reports, to provide risk reports for better communication with your clients to build investor confidence and attract/retain funds under management. *
- Investment Reports, to provide your fund management team with analytics to better manage their fund(s) from a risk measurement, portfolio construction and decision support perspective. *
*A special feature includes risk factor attribution to provide a different perspective on risk
Mark to future methodology
Algorithmics’ patented Mark to Future methodology underpins Algo Risk Reports’ unique approach to advanced risk management, ensuring that it is grounded in reality: risk numbers do not need to be scaled over time and, during simulations, matured instruments are settled correctly, whilst optionality (e.g. changing a fixed income exposure to an equity exposure for convertible bonds) is exercised properly, and the ageing of instruments are accurately captured.
Designed for accuracy
Algorithmics believes risk oversight should be an enabler, and not a hindrance to strategies hedge funds may wish to deploy. Algo Risk Reports offers a pre-defined universe of traded and non-traded instruments to address most hedge fund needs. Model accuracy is especially important for proper measurement of path dependent instruments, for example, barrier options and callable convertible bonds, where proxies are proven to be grossly inaccurate. All assets are modeled and validated by Algorithmics’ financial engineers to enhance accuracy and consistency.
Offers flexible migration path to managed service or in-house deployment options
Depending on the level of sophistication required, Algo Risk Reports as part of the Standard Edition of Algorithmics’ Portfolio Construction and Risk Management solution for Hedge Funds, offers the option to migrate to the more powerful Enterprise Edition – available either as an in-house deployment or in the form of Algorithmics’ award-winning managed risk service – which is interactive and customizable to a hedge fund’s specific requirements.
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