Having enjoyed a very buoyant first quarter, Valorica Global FIL has attracted strong interest from both local and international investors. The firm raised â¬100m within the first two months of its existence and VÃctor Manuel GarcÃa Romero, Valorica Global FILâs Director General, is confident that the fund will reach the â¬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 firmâs 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 fundâs main front office system, enabling Valorica to monitor exposures in real-time, via the systemâs live P&L tool. The new technology also streamlines the reporting of trades to the fundâs 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 fundâs prime brokers and administrator. An exceptions report is generated automatically, highlighting any discrepancies between the prime brokersâ and the fundâs 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, Insightâs extensive reporting functions provide Valoricaâs fund managers with a convenient, yet highly sophisticated means of monitoring their investments.
VÃctor Manuel GarcÃa Romero, Director General, Valorica Global FIL, commented:
âBefore 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 â the market standard in the hedge fund industry â 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.â
âWhen 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.â
Tony Swei, CEO, Tradar, commented:
âSpanish regulators only recently permitted the operation of onshore hedge funds but the market is already flourishing. Valorica is one of Spainâs first hedge funds and also one of its most successful. The company is our first Spanish hedge fund client and weâre delighted by the firmâs decision to install Insight.â