Ramius (LLC), the global alternative investment management business of Cowen Group, Inc. is using AlternativeSoft to construct and manage its client portfolios.
The investment team uses AlternativeSoft for client portfolio construction, portfolio optimisation and managing risk. The software provides them with a comprehensive analysis of portfolio exposures to economic factors, risk elements and hedge fund strategy styles. As Ramius has moved towards providing more customised portfolios for clients, AlternativeSoft offers additional functionality and is easier to use than an in house system, enabling Ramius to better service clients' requirements.
The AlternativeSoft platform is being used by the Portfolio and Risk Management team for portfolio analysis and optimisation. The Platform is linked to all hedge fund databases, Bloomberg, Lyxor managed accounts and Morningstar Hedge fund returns are updated daily if available, enabling the analysis of portfolio exposures to be set against economic factors and hedge fund strategy styles.
The team uses AlternativeSoft to run simulations of stress tests against historical financial data for existing portfolios. The core risk data for a portfolio is calculated using AlternativeSoft and then exported into Excel where it is further analysed within particular frameworks to produce tailored reports for individual clients. The portfolios can then be adjusted to meet clients' specific requirements and risk thresholds.
Vikas Kapoor, Co-Head of Alternative Solutions; "As an organisation Ramius has been moving towards providing more customised portfolios for clients. AlternativeSoft is the perfect solution in that it enables us to create and apply specific modeling constraints on portfolios, which means that they are more likely to meet client needs.
"Five to seven years ago there were no specific fund portfolio construction tools as the hedge fund industry was in its infancy. However, flexible options like AlternativeSoft give us all of the specific analytical functionality of an in-house system, but packaged with a user friendly interface - and we doe don'tt have to worry about support or development issues."
Laurent Favre, founder, CEO and partner at AlternativeSoft said, "Our clients invest in our software platform knowing that they can take financial decisions which are supported by solid academic models. Our software enables Ramius to create unique, tailored portfolios in a user friendly and robust environment."