Riskdata, the leading provider of risk management solutions to the worldwide alternative investment marketplace, announced today that it has upgraded FOFiX, its flagship risk management system, to bring greater risk controls and transparency to the global fund of fund and asset management markets.
The new features allow clients to combine risk profiles of market instruments with those of fund managers to simulate risk across all components of a portfolio. This essential functionality enables fund of funds to proactively manage market risk exposure and assists asset managers with Alpha creation.
"One of the major trends in the market right now is the split between the management of market exposure and the search for alpha," said Olivier Le Marois, CEO of Riskdata. "This is leading investors and fund of funds to add derivatives overlay to portfolios of managers in order to actively manage market exposure in line with their needs. This enhanced version of FOFiX allows firms to do this in an efficient, streamlined fashion, ultimately improving their ability to manage their investment profile."
The upgraded version of FOFiX helps monitor managers by comparing return-based and position-based risk profiles thereby enabling a thorough analysis of the specific risk contributions of each individual manager's active trading strategy and Alpha source.
Additionally, the new version offers new functionalities such as a report editor and a scripting language for complex mapping of securities, both of which greatly simplify use of the system.