Riskdata, the leading provider of expert risk management solutions for the global alternative investment community, announced today the release of a major upgrade to their software HEDGiX.
HEDGIX 3.0 is a complete risk management solution specifically developed for alternative investment strategies.
"Recent market events underscore how imperative it is for investors to understand risk and to plan for unexpected events," said Ingmar Adlerberg, President of Riskdata. "Our mission is to support alternative investors and managers in producing robust, risk-transparent, and differentiated performance by providing complete and continuously evolving risk solutions.
"HEDGIX 3.0 provides advanced risk management methods that will allow users to perform important analyses with ease," he explained. "It combines state-of-the-art risk management techniques in an easy-to-use, process-oriented tool."
According to Adlerberg, HEDGIX 3.0 is unique because it offers two advanced risk management methods to analyze credit and market risk: the in-depth modeling of systemic specific risk as well as active management risks. In HEDGIX 3.0, both risk methods have been upgraded, and a new feature has been added allowing users to compare approaches and to use the results in an integrated framework to better stress test and explore specific risks. This feature is aimed at helping managers differentiate their returns, and thereby reducing exposure to systemic risk in an increasingly crowded and demanding market.
HEDGIX 3.0 incorporates numerous significant enhancements:
Increased Insight into not only Systematic, but also Residual, and Active Management Risk: HEDGiX incorporates two risk methodologies: the Monte-Carlo VaR Method focuses on the true management of Specific Risk (Residual Risk) and the Hedge Fund Factor Model analyzes the risk that is associated with the talent of the manager which is differentiating him from a static portfolio. These two methodologies can be used independently or jointly to achieve greater risk control and transparency. It also permits managers to better differentiate themselves in terms of risk/return profiling from the competmpetition.
A Complete, Risk and Data Solution. HEDGIX 3.0 is a packaged solution that offers a broad data set along with the ability to model a continuously growing number of diverse strategies. This significantly reduces high costs of data management which also translates into immediate operation for the user.
Fast and Interactive. HEDGIX 3.0 has been developed to support the most demanding users who rely on speed, accuracy and quality. It is a decision support tool that rapidly explores the risk impact of countless scenarios enabling users to manage and control risk budgeting and pre-trading.
Risk-Management-Specific, Customizable, and Large-sized Portfolio Reporting: HEDGIX 3.0 provides dedicated reports with customizable data points. The reports are flexible in format and capable of production for large-sized portfolios.
New Reporting Features include:
Bulk Reporting For Creation of Large Number of Funds Risk Reports: Risk reporting managers can now automate the creation of thousands of hedge fund risk reports in several formats (PDF, HTML, MHT), and schedule this task for daily creation. The risk engine combined with the reporting engine allows the creation of 1,500 reports per hour on a single of the shelf PC.
Web-based Risk Report Publishing: Risk reporting managers can now automate the publishing of their reports onto a website for internal or client access, and automate the creation of navigation pages. XML indexes are also created for users who want to integrate risk reports into a wider publishing system.
An Expanded Library of Reports plus a Powerful Report Editor: HEDGiX Vision has a new library of reports that comply with regulatory requests such as UCITS III while also providing standard risk management reports that comply with sophisticated investors' needs. In addition, hedge funds can easily create and customize their own report templates with the report editor that is dedicated to risk content. With HEDGiX Vision, hedge funds now have a powerful tool for generating standardized regulatory reports while also creating customized reports for internal use and for the specific needs of a fund's investors.
New Methodology/Modeling Features Include:
Risk Profiling To Compare Hedge Funds Trading Dynamics with Static Portfolio Views: In addition to the classical Static Portfolio Level Risk Analysis which gives a snap-shot view of the risk of a hedge fund, HEDGiX provides a unique method- Fund profiling to analyze risk by integrating the trading dynamics of the hedge fund into the risk measures. Riskdata is the undisputed market leader in the fund of funds space. Risk profiling enables hedge funds to visualize their own risk profile (i.e. the way investors view them). Moreover, by comparing the risk profile of their returns with the risk profile of their latest portfolio snap-shot, they can obtain an independent assessment of the way their dynamic trading strategy impacts their risk profile.
RTSCRIPT Customized Derivative Risk Modeling: The RTSCRIPT engine combined with the RiskData Customization service allows the integration of almost any model into the system; thus, clients who prefer to use a proprietary model to calculate the risk of certain derivatives or want to include an instrument not modeled in the standard library are now able to do so with this feature. Hedge funds can now easily simulate an unlimited universe of instrument types including nonstandard pay-off structure. Further, this completeness of instrument coverage allows the compliance with regulatory constraints such as the UCITS III.
New Data Features Include:
Doubled Riskdata Risk-Factors Offering: HEDGiX provides online access to a large, set of cleansed risk data, updated daily, saving the cost and the burden of maintaining, cleaning and feeding the risk system with market data. The offering has now doubled the universe covered in the Riskdata Standard offering, allowing users to precisely model the specific risk of more than 20,000 issuers. This offering makes RiskData a "plug-and-play" tool that is immediately operational. In many cases, the data offering covers over 99.5% of the needs of the clients. Hedge funds will benefit from a minimal cost of ownership.
Extended Library of Derivative and Credit Instruments Risk Pricers: With the increased sophistication of markets, the use of derivative and credit instruments by hedge funds has increased. HEDGIX now offers an expanded library of risk pricers for these instruments, allowing clients to capture the risk of most instruments used by hedge funds with dedicated, state-of-the art models, without any additional development or integration.
New Technology Features Include:
ASP-Supported Integration Mechanism: Integrating a risk system with other users' databases, securities masters and sources often implies cross referencing different codes of securities into RiskData codes. HEDGIX now offers an integrated ASP service for effecting such cross referencing in an automated and scheduled manner.
User-Friendly Integrated MiddleWare for Simple Interfacing with Client Systems and Data Sources: The integration engine of HEDGiX has been reinforced to allow for an easy interfacing of static data sources coming from third party vendors or internal databases. It can now be parametered for automated and regular fetching of data from such sources. Hedge funds will benefit from a minimal cost of integration, while quickly achieving an operational solution with flexibility to adapt for further evolutions.
Immediate Interactive Answers: Users can now cut and paste a portfolio from an Excel spreadsheet into HEDGiX 3.0 in seconds. They can also get the most sophisticated Monte-Carlo risk figures with full and multiple drilldown capabilities.