APT has launched its new risk model for Funds of Hedge Funds today - bringing the highest level of reliability and versatility to this new and growing market. This model integrates with the existing range of APT models and software tools for equities, bonds, options, mutual funds and total enterprise risk.
No other system in the market is built using a robust theoretical model to underpin the estimates of hedge fund behavior, and no other system offers the breadth of asset class coverage - which means the FOHF manager has unparalleled choice and flexibility in deciding how to carry out their analysis - rather than being forced to fit an existing framework.
"APT has large client bases in many segments of the industry, and now we bring our practical and theoretical experience and expertise to this poorly-served market segment. At last FOHF Managers can really add their own value, measure it & demonstrate it to their clients" said Jamie Ridyard, MD of APT Europe.
Funds of Hedge Funds can be constructed or analyzed using this specially-tailored APT model and, because the system is based on a multi-asset, non-linear factor model with added Monte Carlo techniques, risk and performance can be decomposed into
traditional sector/country/currency factors,
hedge fund strategy factors, or
new option-like hedge fund factors, devised specially for the unique properties of hedge funds.
APT's range of models already include risk profiles for
and now, with the addition of hedge funds and non-linear factors for hedge funds, asset managers can construct portfolios of hedge funds using the underlying holdings of the hedge funds, or using risk profiles based on the audited NAVs of the hedge funds. In either case they can expect the best possible modelling and use of the data available in the market - leading to the most reliable forecasts.
To avoid wasting customersâ time, the model comes with profiles pre-computed for thousands of hedge funds, but users can also import additional funds. The HFR performance database is included in the subscription.
The software tools include a desktop application suite, MS ExcelÂ® Add-ins, COM and XML programming tools, ASP applications, a portfolio construction optimizer, historical strategy testing tools, and scenario and stress-testing software.
The new FOHF model has been in development and beta test for 16 months, and is already in use at some of the largest asset management institutions in the USA and Europe.
APT is the market leader for portfolio analysis systems in various geographical regions, has hundreds of international investment and trading institutions in its client base, and offices in 10 locations around the world. APT also computes the fund ratings for FT Fund Ratings, and Eurofunds Fund Ratings.