Firm Profile: Family Office, HNWI, Alternative Investments
Product: Risk Shell, FoF Manager, Multiple Data Sets, Data Migration
ABC Quant Client Since 2013
The European Family Office (The Office) manages HNWI portfolios of over US$100 million AUM and invests mostly into hedge funds and ETFs. The investment team of the Office consists of two employees - a portfolio manager and an accountant. The Office had been using risk analytics, a desktop application, from one of the leading software vendors for over 6 years and decided to switch to a more advanced system.
Challenges and RequirementsDue to a limited headcount of the Office, the Portfolio Manager was responsible for multiple functions: asset selection, due diligence on fund managers, risk assessment, portfolio construction and accounting control. That is why the new system was supposed to provide an effective workflow by integrating all phases of the investment process into one environment. "We discussed different options of facilitating our workflow while keeping intact the quality of research and risk valuation. Risk Shell was the ideal solution for us because of its flexible architecture, cutting-edge analytics and shared access options," said the Portfolio Manager. "The workflow of Risk Shell is well-thought and user-friendly. I can easily analyse and rank hundreds of managers using FlexiRank and Peer Group Analysis within a few hours - saving time is paramount for us," he added.
"Being responsible for managers' due diligence, I have to travel often to meet managers on-site. With Risk Shell remote shared access, I can instantly share my research, proposed portfolios and notes with my boss, while travelling abroad or being on the plane," noted the Portfolio Manager. "The shared access is a game changer, it saves time and makes team collaboration easy and fast, " he said.
Enhanced Portfolio Performance
"We have strict requirements to our investment portfolios, beating the index is not enough. My job is to deliver absolute return hedge fund portfolios having performance better than equities, but with very low risks. Risk Shell gives me many tools of doing that and constructing perfect instruments - portfolio optimization, market-neutral portfolio builder, stress testing and others, " mentioned the Portfolio Manager.