Firm Profile: Hedge FoF, Alternative Investments
Product: Risk Shell, FoF Manager
ABC Quant Client Since 2014
The Independent Investment Management Company (The Company) was founded in 2012 and offers several absolute return multi-manager hedge fund of funds to HNWI and institutional investors. The Firm has AUM of about US$50M. As of Dec 2017, their team includes 4 employees, all of them 5 are investment professionals.
The Firm was looking for a complete investment and shadow accounting framework to support all the phases of their investment process: manager selection, risk management, portfolio constriction, reporting, shadow accounting and CRM. Due to a limited Company's headcount, the Portfolio Manager is also responsible for shadow accounting and investor relationships. A bundle of Risk Shell and FoF Manager presented a perfect-fit solution to address all the Company's needs.
Better Performance - More Investments
Being a relatively small investment boutique, the Company strove to attract large institutional investors. One of the ways of achieving that was to deliver an exceptional performance of their funds yet to prove a sound institutional-grade risk management approach. Using Risk Shell advanced portfolio management techniques, the Company's flagship fund appeared in the top 1% tier of the Global hedge fund of funds universe across most risk statistics in 2016. "We use Risk Shell to solve all the tasks, from manager screening, risk assessment, factor analysis and stress testing - to non-linear portfolio optimization. Risk Shell offers not only the most advanced FoF investment methodology existing today, but also facilitates the process, making it doable for small teams. Doing the same in-depth risk analysis without Risk Shell would be impossible," said the Company's Risk and Portfolio Manager.
Advanced Factor Analysis
To deliver more robust market-neutral investment vehicles, the Company implemented ABC Quant's Macroeconomic Scenario Screening™ and Stress testing techniques. "On top of a thorough operational due diligence we check the ‘quality’ of their hedging techniques across different macroeconomic scenarios, take into account hundreds of market factors, run extensive stress testing, employ both returns- and holdings-based risk analysis and many more, " said the Portfolio Manager. "We typically spend three to four hours with Risk Shell," she added.
"Risk Shell team has been a pleasure and delight to work with. They are always available to help us whenever we need their instant email advice or ask for a tutorial via web conferences. They have been also very cooperative in adding new Risk Shell features based on our requests," said the Company's Risk and Portfolio Manager.