Veotoro Management, a Miami-based commodity hedge fund, has implemented SunGard’s Kiodex Risk Workbench for commodity trading and risk management.
Veotoro will use Kiodex to manage portfolio risk using a range of reports for risk analysis, profit and loss, attribution, mark to market and Value at Risk (VaR). Kiodex will support the new fund’s relative value trading strategy in commodities and in the global energy sector.
Delivered as a Software-as-a-Service* (SaaS) solution, SunGard’s Kiodex is a Web-based commodity trading and risk management solution that integrates trade capture, valuation models, risk measurement, financial reporting and independent market data. By providing commodity-specific risk analysis tools and data, Kiodex helps Veotoro to accurately value its portfolio of commodity and energy trades and manage portfolio risk. Kiodex’s SaaS delivery model provides an automated, Web-based environment to help Veotoro simplify implementation, accelerate time-to-market, gain processing efficiencies and reduce ongoing maintenance and support costs.
Virgilio Guma, managing director at Veotoro Management LLC, said, "Kiodex’s risk analytics, combined with the provision of global market data, sets it apart from other solutions. Not only does Kiodex provide independent valuation of our commodity portfolio, but it can also help us identify trading and arbitrage opportunities. In addition to meeting our aggressive timelines, Kiodex has helped us to streamline our daily trade entry and broker processes, accurately reflect our trading strategies, and achieve straight-through processing through integration with our trading platforms. SunGard has demonstrated Kiodex’s proven value in supporting comparable objectives in other hedge funds."
Ben Jackson, coo of SunGard’s Kiodex, said, "As commodities make the transition into mainstream asset classes, they present investors with an opportunity to earn long-term absolute returns. Increasingly, hedge funds looking to raise capital through commodity and energy trading demand robust risk analysis tools and market data in a growing commodities market that is fueling emerging market growth. Kiodex’s proven risk analysis capabilities and SaaS deployment help these firms raise capital and achieve their business objectives quickly."
* SunGard Financial Systems is pursuing a visionary initiative to transform some of the key functionality of its core systems into components to form a new software development and on-demand delivery environment called Infinity. Infinity enables financial institutions to develop and deploy custom applications, integrating SunGard components with their own proprietary or third party components. Infinity uses SunGard’s Common Services Architecture (CSA), a service-oriented architecture (SOA) development framework, offering business process management (BPM) and a virtualized, software-as-a-service (SaaS) infrastructure.