London-based alternative asset manager BlueCrest Capital Management has implemented the Algo Risk Service, an outsourced portfolio construction and risk management service from Algorithmics, part of the Fitch credit ratings group, for its risk management practice.
'Our portfolio has experienced substantial growth in assets under management, and we were looking for a vendor who could provide a high level of service and support to enable us to rapidly deploy new instruments into our risk management service,' says BlueCrest head of risk Jonathan Martin.
'Algorithmics has the capability to respond to our changing requirements in a timely way, introducing additional instruments and supporting the service with experienced customer support professionals. We have a risk system in production that is configured to our unique requirements, can grow with our business, and includes responsive support from people dedicated to addressing our needs.'
BlueCrest, which specialises in managing institutional assets, was founded in 2000 by Michael Platt and William Reeves, who were previously managing directors and senior proprietary traders at JP Morgan.
Andrew Aziz, Algorithmics' executive vice-president for risk solutions, adds: 'We are delighted to be working with BlueCrest in providing a customized risk service to meet their specific multi-strategy requirements. We are providing a flexible and dedicated risk management service without the overheads normally associated with such coverage, processing power and support.
'Algo Risk Service provides unmatched instrument coverage across all asset classes and investment strategies, in particular addressing BlueCrest's strong position in credit derivatives and OTC products in general.'
According to Algorithmics, Algo Risk Service allows investment managers and risk managers to analyse and quantify the risks across portfolios containing both traditional assets and sophisticated, structured products, and to use these risk profiles to create and implement new trading and investment strategies.
The service, which is accessed via a web browser, can assimilate the risk profiles of new instruments to be incorporated into portfolios for stress testing against a bespoke set of risks. It offers a complete portfolio construction and risk oversight solution without the costs of complex implementation or infrastructure, the firm says.