Riskdata, a provider of risk management solutions to the global alternative investment community, has announced the release of HedgiX 3.0, a major upgrade to its risk management software d
Riskdata, a provider of risk management solutions to the global alternative investment community, has announced the release of HedgiX 3.0, a major upgrade to its risk management software developed specifically for alternative investments.
‘Recent market events underscore how imperative it is for investors to understand risk and to plan for unexpected events,’ says Riskdata president Ingmar Adlerberg. ‘Our mission is to support alternative investors and managers in producing robust, risk-transparent, and differentiated performance by providing complete and continuously evolving risk solutions.
‘HedgiX 3.0 provides advanced risk management methods that will allow users to perform important analyses with ease. It combines state-of-the-art risk management techniques in an easy-to-use, process-oriented tool.’
According to Adlerberg, HedgiX 3.0 is unique because it offers two advanced risk management methods to analyse credit and market risk, the in-depth modelling of systemic specific risk and active management risks.
In HedgiX 3.0, both risk methods have been upgraded, and a new feature has been added allowing users to compare approaches and to use the results in an integrated framework to better stress test and explore specific risks. This feature is aimed at helping managers differentiate their returns, and thereby reducing exposure to systemic risk in an increasingly crowded and demanding market.
HedgiX includes two risk methodologies. The Monte-Carlo VaR Method focuses on the true management of specific risk (residual risk) while the hedge fund factor model analyses the risk associated with the talent of the manager that differentiates him from a static portfolio.
HedgiX 3.0 is a packaged solution that offers a broad data set, and the ability to model a continuously growing number of diverse strategies, reducing the costs of data management. New reporting features include bulk reporting for creation of large numbers of fund risk reports. Risk reporting managers can automate the publishing of their reports onto a website for internal or client access, and automate the creation of navigation pages.
New methodology and modelling features include risk profiling to compare hedge fund trading dynamics with static portfolio views. In addition to the classical static portfolio level risk analysis that gives a snapshot view of the risk of a hedge fund, HedgiX provides a fund profiling to analyse risk by integrating the trading dynamics of the hedge fund into the risk measures.
Risk profiling enables hedge funds to visualise their own risk profile the way investors view them. By comparing the risk profile of their returns with the risk profile of their latest portfolio snapshot, they can obtain an independent assessment of the way their trading impacts their risk profile.
The RTscript engine combined with the Riskdata customisation service allows the integration of almost any model into the system. This enables clients who prefer to use a proprietary model to calculate the risk of certain derivatives or include an instrument not modelled in the standard library to do so.
Hedge funds can simulate an unlimited group of instrument types, including non-standard pay-off structures, and this completeness of instrument coverage allows compliance with regulatory constraints such as Ucits III.