FinAnalytica Sees Broad Acceptance of Cognity Fat-Tailed Methods with Twelve New Clients

22 June 2010

- Holdings-based outpace returns-based installations
- Adds major global corporate pension fund
- Signs first North Africa and South America clients

FinAnalytica, the leading provider of real world portfolio risk solutions for asset managers, hedge funds and multi-manager funds, announced today that twelve new clients have adopted its Cognity risk management and portfolio allocation platform since the start of the year.

Citing increased interest across all regions and sectors, the company reported that, for the first time, position-based risk platform sales outpaced those for returns-based analytics. New clients in North America, include a major global corporate pension fund and Blue Asset Management, a New York-based fund of hedge funds. In London, there were major wins with a large consulting firm and a diversified bank. Cairo-based Risk Analytics Corporation signed on as the company’s first North Africa installation. Additional new customers include a first South American installation and two major asset managers along with several hedge funds, endowments and family offices.

“After exhaustive research, we concluded that FinAnalytica offers a unique approach for accurately measuring and reporting fat-tailed risk,” said Mark Graham, Managing Partner of Blue Asset Management. “Cognity combines this unique analytical approach with superior portfolio construction workflows and flexible factor modelling capabilities. We decided that our investors would be best served by FinAnalytica’s Cognity.”

Boryana Racheva-Iotova, President, FinAnalytica stated, “We are predominately closing either pure position-based risk sales or combined sales of positions, exposures and returns-based analytics. This is not surprising given the focus on investor demand for greater transparency.”

“We’ve seen a major uptick in general interest of our fat-tailed risk methodology and a significant increase in the number of firms actively evaluating risk platforms,” said David Merrill, FinAnalytica CEO. “This reflects heightened awareness on the impact of extreme events in today’s markets, ineffectiveness of the industry standard models and a repositioning of risk management toward more senior roles with increased budgets.”

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