Imagine Software, a leading provider of real-time portfolio and risk management solutions worldwide, today announced the selection of its award-winning, Internet-based Derivatives.com service by Sydney-based Instinct Capital. The newly launched hedge fund will employ Imagine to provide comprehensive portfolio and risk capabilities.
Head investment manager Fred Eechaute characterizes the firmâs strategy as long/short with a derivatives overlay, tightly focused on equities, and specializing solely on the Japanese market through the Tokyo and Osaka exchanges. âOur management pedigree stems from previous positions at Mizuho and DKR Oasis, and we are very comfortable operating in that market, which offers some unique advantages due to the available liquidity we can offer investors. With that said, operating with a competitive edge and winning investor confidence requires a recognized solution such as Imagine, with its robust selection of real-time portfolio and risk management functions. Operating a spreadsheet-based business was never an option for us.â
Business manager Stephen Good added: âOf the operational issues we faced before launching our fund earlier this month, one of the most critical was ensuring our ability to take fullest advantage of the Japanese market liquidity that Fred mentioned. The ability to enter and exit positions very quickly is paramount, but equally important is proper timing. To maximize investor returns you have to know when to modify positions, and Imagineâs real-time performance means we can run âwhat-ifâ scenarios, portfolio stress tests, and other sophisticated metrics in a continuous manner throughout the day. Imagine gives us the insight we need to make the best, most informed trading decisions.
âAnother critical issue,â Good continued, âwas driven by investor expectations. Todayâs investors not only demand stringent risk controls but expect reports that provide transparency into how we manage their assets. Imagineâs custom reporting capabilities enable us to present any number of P&L analysis, attribution, and risk calculations in a rich and visually compelling manner that is tailored to each investorâs needs. The same set of capabilities also enables us to provide a wealth of on-demand data for fund-of-funds managers.â
Instinct Capitalâs trading and operations manager, Anita Lam, is in charge of implementing Imagine. âI like the fact that Imagineâs flexible built-in tools facilitate the task of integrating our other front-end trading and execution management systems into a cohesive whole. And we all appreciate the on-site implementation and training support weâre receiving as we learn best practices for day-to-day tasks like trade booking, P&L, âflash NAVâ and rate-of-return generation, VaR calculations, and advanced report generation. Such intensive, high-quality training helps us extract more and more value from our investment in Imagine.â
âWe think Instinct Capital is an excellent example of experienced principals rising to the challenges of a tougher, more volatile market environment,â said Yvonne Dahl, Global Director of Sales and Marketing at Imagine. âThey leverage their use of Imagine to build credibility with their investor base while simultaneously applying more of the systemâs advanced capabilities to their business processes. Weâre excited about helping them grow their business and extending the competitive edge they now enjoy.â