Hedge funds pride themselves on being nimble and creative. Managers are under constant pressure to outperform the market benchmark indices against which they are measured. With 10% of all hedge funds collapsing each year due to the competitive pressures in the industry, funds are placing cost control and efficiency higher in their priorities. The hedge fund industry is also facing increased levels of scrutiny as regulators seek to protect investors with a greater level of transparency, so fund managers may be required to prepare additional reports for both investors and regulatory bodies.
Just as importantly, the ability of traders to spot market trends and act upon them quickly in fast moving markets are key drivers, especially when only a few basis points can make the difference between a good or bad trade. As a result, they need information at their fingertips in order to understand their current position and act upon market opportunities.
With Brady’s solutions, traders have complete power over the management of their trading information and can perform ‘what-if’ scenario analyses on how a proposed new trade may affect the portfolio. A deal capture screen provides all deal-related data on screen for reference and validation and includes many functions to reduce input time and errors, such as the automatic calculation of commissions from pre-defined rules and real-time limit reporting, which can immediately flag position limit violations.
All aspects of risk can be measured, including stress testing, gap analysis, scenario analysis and Value at Risk (“VaR”) by variance/covariance and Monte Carlo methods. The risk analysis tools can be used at both the desk and firm-wide levels which provides an open and flexible means of effectively managing derivative positions in the portfolio. Mark-to-market reports can be generated and stress tested, either on a selected portion of the portfolio or the entire portfolio with one click.
In addition, powerful query and reporting tools allow management to view, analyse and report on any aspect of the business. All data can be analysed cross product, cross portfolio, as well as by desk and by trader. All analysis can be viewed online and produced as reports for distribution on paper or via an intranet.
Hedge Funds that we work with: