ERAAM selects Riskdata for fund of fund risk budgeting

ERAAM, a Paris-based fund of funds, has selected Riskdata's FOFiX risk management product for its portfolio of hedge funds. FOFiX is the first solution to allow risk budgeting throughout the whole investment process for funds of funds.

Bertrand Van Houte, Chairman of ERAAM, commented: 'We selected Riskdata's FOFiX because it streamlines risk aggregation across 100% of our portfolio, integrating both quantitative and qualitative analysis. As a result FOFiX enables us to have a greater control on our aggregate risk exposure, in line with our targets.'

Olivier Kintgen, Partner of ERAAM, added: 'By facilitating quantitative communication, we can demonstrate an institutional level of risk transparency. FOFiX enables us to implement the risk budgeting approach in an effective way for a seamless and structured investment process.'

Olivier le Marois, CEO of Riskdata, said: 'With more institutional money flowing into hedge funds, there is increased pressure on funds of funds to provide even greater risk transparency. FOFiX helps them respond to this demand on three levels: firstly it enables them to aggregate all available information on the individual funds; secondly it supports and highlights a structured investment process, through the risk budgeting approach; and finally it allows funds of funds to treat hedge fund as a distinct asset class, integrating their dynamic and statistical specificities into the risk profile.'

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