Clearwater Analytics has introduced new factor risk capabilities aimed at hedge funds and asset managers, expanding its platform to deliver unified risk analysis across both portfolio management and investment oversight teams.
According to a press statement, the rollout is designed to reduce the gap between trade decision-making and risk visibility, an issue the firm says persists across much of the industry. In many organisations, portfolio managers typically receive risk feedback hours after executing trades, while chief investment officers (CIOs) and risk teams often rely on separate systems and static reporting cycles to assess portfolio exposures.
To address this, Clearwater has launched two complementary products: Factor Risk Lens, which is embedded within its Enfusion platform for portfolio managers and traders, and Factor Analytics, a self-service risk interface aimed at CIOs and risk leadership teams.
According to the company, the new tools are intended to bring pre-trade and post-trade risk assessment into a single, continuous workflow, enabling investment teams to evaluate exposures and portfolio impacts in real time.
Kirat Singh, President of Risk and Alternative Assets at Clearwater Analytics, said risk analysis should be integrated directly into the investment process rather than treated as a retrospective function. He added that both portfolio managers and senior investment decision-makers require immediate access to consistent risk data to support more informed decisions.
Factor Risk Lens allows portfolio managers to simulate trades and assess their potential impact on portfolio exposures before execution. It also provides post-trade analytics, including factor-based performance attribution, exposure tracking and stress testing, enabling teams to understand the drivers of returns and risk changes over time.
Factor Analytics extends similar functionality to senior investment and risk teams through a continuously updated dashboard. Built on Clearwater’s underlying data infrastructure, the tool enables users to run scenario analysis, review factor exposures and investigate portfolio risk on demand, without relying on manual reporting workflows or service requests.
The firm said both solutions are underpinned by its unified investment data platform, ensuring that portfolio managers, risk teams and executives are working from a consistent set of reconciled information. Clients can apply proprietary factor models, third-party models, or Clearwater’s in-house GR8 Equity Factor Model.
Clearwater positioned the launch as part of a broader push to consolidate portfolio management, trading, accounting, compliance, performance and risk analytics into a single cloud-native system, reducing operational fragmentation across institutional investment firms.
