FinAnalytica today announced that Henderson Capital Management has selected FinAnalytica's flagship CognityFoF as its risk management and portfolio construction system.
CognityFoF is the only fully transparent "post-modern" platform available for returns-based multi-manger risk analytics. Henderson Capital Management is a Boston-based multifamily captive hedge fund of funds.
Henderson chose CognityFoF after a comprehensive search. CognityFoF supports manager screening and selection, factor analysis, portfolio risk decomposition, dynamic backtesting, downside risk optimization, stress testing and crisis simulation.
Henderson CEO Mark Pearl remarked, "We are excited about going live with CognityFoF. CognityFoF provides the analytics for deeper insights about the risks of the funds in our portfolio, with the modeling capabilities to help identify ways of better managing portfolio level risk. FinAnalytica recognizes that managers need more sophisticated analysis to optimize fund management. We hope to gain significant benefits in optimization of our portfolio."
"We are extremely pleased to welcome Henderson Capital Management as a member of our growing client base," said Doug Martin, CEO of FinAnalytica. "In today's volatile markets, fund of funds require risk and portfolio construction analytics that provide a viable alternative to the inadequate normal distribution model of hedge fund returns. CognityFoF's post-modern approach uses fat-tailed skewed distributions and downside risk measures to better support the full investment process. I am confident that Henderson Capital Management will attain increased confidence through accurate, transparent portfolio risk decompositions, and will achieve better portfolio performance using downside risk budgeting-based allocation decisions."