Leading Spanish Hedge Fund Valorica Global FIL Implements Tradar Insight

10 March 2008

Valorica Global FIL, one of Spain’s first onshore hedge funds, has implemented Insight, a sophisticated portfolio management and accounting system developed by specialist hedge fund technology provider, Tradar. Valorica Global FIL, which was launched on 28th September 2007, following approval from the Comisión Nacional del Mercado de Valores (CNMV), manages three investment vehicles. The first, Valorica Global, a long/short equity fund, was given the green light by the Spanish financial regulator (the CNMV) on 10th October 2007, while Valorica Macro, a global macro fund, and Valorica Alpha, a multi-strategy vehicle, both gained regulatory approval on January 25th 2008. The decision by the CNMV to permit the operation of onshore hedge funds was taken a few months earlier, in March 2007.

Having enjoyed a very buoyant first quarter, Valorica Global FIL has attracted strong interest from both local and international investors. The firm raised €100m within the first two months of its existence and Víctor Manuel García Romero, Valorica Global FIL’s Director General, is confident that the fund will reach the €150m mark by the end of the June 2008, thereby (maintains Mr Garcia), becoming the market-leading hedge fund in Spain.

As part of the firm’s drive to cut down operational risk, as well as to reassure potential investors and regulators of the robustness of its technological infrastructure, Valorica has installed Tradar Insight. The Insight portfolio management and accounting platform, which was implemented in September 2007, serves as the fund’s main front office system, enabling Valorica to monitor exposures in real-time, via the system’s live P&L tool. The new technology also streamlines the reporting of trades to the fund’s prime brokers and administrator: once trade data has been entered on to Insight, transaction details are automatically collated into a trade file and forwarded to the fund’s prime brokers and administrator. An exceptions report is generated automatically, highlighting any discrepancies between the prime brokers’ and the fund’s records. Insight integrates with all major prime brokers and fund administrators, which has enabled Valorica to make use of different service providers for its three hedge funds. In addition, Insight’s extensive reporting functions provide Valorica’s fund managers with a convenient, yet highly sophisticated means of monitoring their investments.

Víctor Manuel García Romero, Director General, Valorica Global FIL, commented:

“Before deciding to implement Tradar Insight, we carried out a considerable amount of market research. Tradar Insight proved to be one of the most widely used systems – the market standard in the hedge fund industry – and was also thoroughly recommended by prime brokers. We considered other systems but these would have needed hundreds of hours of consultancy, making them more expensive choices. Insight was easy to implement and also offered very wide coverage of different financial products.”

He added:

“When we go to clients, they ask how we are structured, what IT systems we use and whether our systems are robust and auditable. Tradar is well known and investors are reassured by that. There is particular recognition when we go to international clients. Spanish regulators also pay a good deal of attention to operational risk and systems, so it is important to have invested in solid technological infrastructure.”

Tony Swei, CEO, Tradar, commented:

“Spanish regulators only recently permitted the operation of onshore hedge funds but the market is already flourishing. Valorica is one of Spain’s first hedge funds and also one of its most successful. The company is our first Spanish hedge fund client and we’re delighted by the firm’s decision to install Insight.”

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