To help hedge funds meet new demands from regulators and investors, Algorithmics, an IBM Company and leading provider of enterprise risk solutions, today announced that its hedge fund reporting service is now available for the US market. The service, Algo Risk Reports, has recently signed Optima Fund Management as a client in New York for UCITS reporting.
Algo Risk Reports is designed to be a cost-effective risk service for hedge funds looking for a product that is easy and quick to implement yet robust and accurate. The service provides pre-configured, static reports for regulatory, investor and internal stakeholders. Aimed at hedge funds that have chosen not to build certain parts of their risk management systems in-house, Algo Risk Reports meets funds’ demand for better asset coverage and more flexibility for derivatives.
Commenting on Optima’s selection of Algo Risk Reports, Geoffery Lewis, cfo, Optima Fund Management, said: “Algorithmics’ reporting service addressed our needs to meet UCITS regulations in Europe, as well as providing Algorithmics’ analytics for our own investment reporting in a cost-effective manner. Following a rapid implementation we are now in a position to pursue opportunities in the European retail market.”
Dr Andrew Aziz, executive vice president of Buy-Side Risk Solutions at Algorithmics, commented: “We are delighted to welcome Optima to Algorithmics’ community of hedge fund clients. We have launched our reporting service at a time when hedge funds worldwide face a new regulatory environment of UCITS IV, AIFMD and Dodd-Frank, as well as increasing demands from their investors for higher levels of risk transparency facilitated by the OPERA standards. To meet these demands, Algo Risk Reports provides three types of reports for regulatory compliance, independent investor reporting and investment decision support. It uses Algorithmics’ full revaluation- and simulation-based approach, which means that the product is especially suited to the non-linear strategies undertaken by hedge funds of all sizes.”
Algo Risk Reports is a core component of Algorithmics’ solution for hedge funds, Portfolio Construction and Risk Management for Hedge Funds, which has been designed for hedge funds irrespective of their strategy, level of sophistication or assets under management. Hedge funds can start with a choice of pre-configured risk reports and as their risk needs change, they can migrate to more sophisticated risk systems that are fully customizable.
