Skip to content

Integrating risk management into the investment process

The Challenge

Proactive risk management for fundamental investors.

Managing an active/neutral fund is much more than pairing longs and shorts, it is also about understanding (and adjusting if needed) where your risk/return is coming from (both known and unknown). For example, how much of our returns are based on asset selection (alpha) versus other market factors, such as momentum, growth and other factors. Solving these challenges today typically takes dedicated (and expensive) personnel and in many cases, it is still very difficult to integrate into the fundamental investment process or is not timely enough.

The Solution

The EDS decision-support platform

A high performance, easy-to-use and configurable workflow solution built around their investment & risk processes – implemented quickly and affordably – streamlining/eliminating excel processes, centralizing data, providing valuable feedback, and supported by a highly experienced team of former investment professionals / quantitative analysts.

The EDS Value

With EDS, usability and the value of their MSCI data from skyrocketed, based on:

  1. A simple and intuitive application that any member of the investment team could use.
  2. Uniquely configured to their firm, including master & sub- funds and each team and individual member.
  3. Once click analysis, including simulating portfolio changes and optimizing for exposure changes.
  4. The Head Trader can identify multiple risk, factor, return and exposure changes across any time-series in a few clicks, helping the investment team gain valuable and actionable insights in real-time.
  5. Ability to isolate both asset selection and outside risks and returns, down to analyst and stock level.
  6. Before the trade, they can now incorporate factors into idea generation and portfolio construction.
  7. Performance attribution across the team has been improved

Immediate results

  1. Improved performance to help measure and improve your investment process – making it easy to analyze where your team succeeds and where the blind spots are, keeps all intellectual property (IP) in-house, and creates accountability and transparency within the investment team.
  2. Streamlined what had required multiple applications, vendors and manual processes into one integrated system across Idea Generation, Portfolio Construction and Risk Management. Aggregated all data (including codifying internal intelligence) into one platform, making evaluating the data and ideas much easier and faster.

  3. Consolidation into one vendor and system reduced hedge fund’s overhead and did n have to hire additional personnel. 

Request A Demo