Founded in 1998, Marathon has US $11 billion in assets under management and operates several funds encompassing global equities, global debt, emerging markets, special opportunities, structured finance, and real estate. In May 2006, Marathon first implemented Imagineâs cross-asset solution for use in its New York office to support equity volatility and fixed-income trading activities. Recently, the firm utilized Imagineâs easy scalability to expand usage to its Singapore office, bringing its total seat count to 12.
According to chief risk officer John Duddy, several years ago the company resolved to improve the quality and consistency of its risk management practices. âWe recognized the key importance of risk controls for our business activitiesâthe need for which recent market conditions amply underscore.â
Duddy, who joined Marathon in 2004, realized the firmâs current and future business needs dictated a migration to reliable, high-performance systems with advanced functionality, audit trails, broad instrument support, easy extendibility to support additional funds and users, plus other attributes considered essential at institutional banks. âSimply put, we wanted robust risk management, with rigorous controls in place to support our business operations in a secure manner.â
âImagine provides many powerful risk tools to perform portfolio stress tests, âwhat ifâ scenarios, VaR analysis, etc. But one I find particularly useful for my own purposes is the Projection Tool. It can report P&L across a range of volatility and helps me pinpoint hidden gamma risk. Quite useful indeed.â
Looking forward, Duddy said: âWe are careful about implementing new technology, but based upon our experience so far with Imagine, I see opportunities for expanding our usage of the system to interest-rate derivatives, swaps, and additional options. Weâre quite pleased.â
Yvonne Dahl, Director of Sales and Marketing at Imagine, said: âMarathonâs insight into the importance of strong risk capabilities is one that prudent firms should emulate, especially in todayâs market conditions. We are privileged to serve their needs today and moving forward.â