Manager style analysis presents a relatively new trend in hedge fund assessment. Though the "style analysis" term has been popular among investment advisors for a long time, typically, it implies a manager style (or a trading strategy) decomposition into a fixed predefined set of investment styles, e.g. value, growth etc. While many existing style analysis platforms were designed for fully transparent mutual funds providing daily reports, their applicability for monthly reporting and non-transparent alternative investment vehicles becomes questionable. Quant Style Analysis solutions are entirely different. Developed by hedge fund professionals and tailored specifically for alternative investments, Quant performance attribution analysis opens a new dimension for a deeper insight into manager trading strategies and driving macro factors, thus giving you a competitive advantage.
- Maintain an accurate view of manager trading strategies and style drifts
- Identify exposures to not disclosed asset classes and markets
- Find key macroeconomic factors driving manager performance
- Stop relying on ambiguous manager strategy labels from data vendors
What We Can Do For You
- Construct the best fit factor (style) subset for your fund or a portfolio
- Identify the best factor model by testing various concepts, e.g. Kalman filters, Elastic-net, LASSO etc.
- Identify manager style drifts and important exposure changes
- Perform both Holdings- and Returns-Based Style Analysis
- Identify key macroeconomic factors driving manager performance (static and/or dynamic analysis)
- Suggest solutions to mitigate an unbalanced exposure to devastating strategies and/or macroeconomic factors