NewFinance Selects Riskdata for Fund of Funds Risk Management

NewFinance Capital Partners, a London-based fund of hedge funds group, has selected Riskdata's FOFiX risk management solution. Riskdata's FOFiX is the first product dedicated to fund of hedge funds risk budgeting throughout the investment process.

Georges Saier, Partner and co-founder of NewFinance Capital Partners, commented: 'Riskdata is a logical choice to support our portfolio construction process. It offers an in-depth analysis of the drivers of performance and risk of our investments while facilitating the ongoing review of our allocations.'

Benjamin Mouté, Head of Quantitative Research at NewFinance Capital Partners, continued: 'We need to monitor the sensitivity of each hedge fund against a large set of factors in order to capture the dynamic of the individual funds. Riskdata helps give us a view of our aggregated exposure and risk, and allows us to drill down to the hedge fund level as well. Moreover, we can produce scenario analysis, exposure, and VaR reports for all of our portfolios and use the results as pro-active feedback for the investment process.'

Olivier Le Marois, CEO of Riskdata, added: 'FOFiX is result of ongoing dialogue with the alternative investment community. It has been specifically designed to address the risk requirements expressed by the fast growing community of institutional investors who are willing to invest in hedge funds. It takes into account the work of the Investor Risk Committee (IRC), a forum of more than 300 institutional investors, hedge funds, fund of funds and service providers.'

'There is a growing consensus within the industry that funds of hedge funds cannot simply be considered as a portfolio of portfolios: from manager selection to active allocation policies, the dynamic of each hedge fund is a key contributor to performance and therefore risk. We are very proud to offer our clients the first solution which approaches hedge funds as a distinct and specific asset class, overcoming the limitations of the traditional sell-side approach, based on aggregation of positions.'

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