The Duet Commodities Fund has selected Imagine Software's ASP service for risk and portfolio management. The fund is part of the global alternative asset manager, Duet Group, which has over USD2.4 billion of equity under management.
Duet invests in a wide array of commodities with particular emphasis on energy, metals and foreign exchange. The new fund’s investment strategy, which couples fundamental analysis with technical market indicators, relies on the ability to adapt quickly to changing market conditions through dynamic hedging in liquid derivatives. The complexity of such investments made powerful, third-party risk management a priority to protect client capital. Imagine was chosen after careful review of the risk management solutions available on the market.
Duet’s commodities traders use Imagine for real-time analysis of differences in the behaviour of sectors. Employing user-customisable risk calculations, they monitor and compare exposures to Greeks and associated impacts on P&L. From an internal management perspective, the ability to modify risk calculations and portfolio views on the fly allows Duet’s management team the flexibility to measure exposure and P&L between sectors, portfolios and traders. This capability provides the firm with unparalleled insight and transparency to make informed investment decisions. Additionally, the fund has established risk parameters that signal when a trade is stopped out or hits its target, and Duet can inform investors about best- and worst-case scenarios at any point during the day.
“At Duet we take risk very seriously,” says Tony Hall, Chief Investment Officer of the Duet Commodities Fund. “The top reason we selected Imagine was their ability to deliver robust risk management capabilities via cloud technology. I can log into the system from my desk, laptop or home PC and see my risk from anywhere in the world. When I am with clients and investors, I access Imagine and show them our risk parameters in real time. I can even perform shocks to show them what would happen if the market were to move in one direction or another. As the fund expands, all new traders will have an Imagine screen in front of them.”