Products
HEDGiX
Specifically developed for Hedge Funds and Alternative Investments, Riskdata®’s HEDGiX is a complete risk management solution particularly adapted to dynamic investment strategies. The range of practical risk reports produced by HEDGiX matches both in-house active management needs and the growing demands of institutional investors for clear, relevant, and comparable risk analysis.
Operating in a complex and rapidly changing environment, hedge funds benefit from a solution that adapts immediately to new investment strategies and risk conditions.
The wide range of risk transparency levels proposed by HEDGiX enables hedge funds to build an appropriate and direct dialogue with their investors, yet keep full control over their proprietary positions.
HEDGiX's pre-integrated technology combines dynamic data with the industry’s leading software in an "all-in-one" product, to deliver an immediate operational solution with no set-up cost. Hedge funds benefit from Riskdata's comprehensive data cleaning and the advanced processing power of its pre-simulation plant. Computer processing at the client’s workstation is therefore efficient and "light" to support interactive analysis.
Figure 1
Key Product Features
Readable Reports For Each Use
HEDGiX offers a full range of customised reports, from one-page standard templates to fully proprietary reports for active risk managers. Multiple formats (Excel, CSV, PDFs) facilitate bulk email delivery or allow further comprehensive risk aggregation by the receiver. User-friendly structuring of risk allows the highlighting of risk concentration within a few clicks.
Adaptive Risk Factors
Risk managers choose among thousands of pre-defined factors or easily create new factors to adapt to changes in market and investors needs.
Full Selection of Level of Transparency
Unlike other solutions, HEDGiX does not require exporting of proprietary positions from the user’s site to third parties. Definition, production, and transmission of reports are done on site, by the users. They can choose appropriate report form and level of detail.
Multi-level aggregation of risk enables the user to highlight any risk concentration.
Figure 2
Standard & Advanced Risk Measures
HEDGiX provides the entire range of industry standard and advanced risk measures, including Value-at-Risk, Marginal VaR, Incremental VaR, Component VaR, Exposures, Stressed Variation of Present Value, Standard Deviation, Sensitivities, Relative VaR, Tracking-Error and more. Additional risk measures include exposure to Liquidity Risk and Counterparty Credit Risk.
Data + Software All-in-One
Access on-line the widest range of daily cleaned and pre-processed data, integrated in real-time with all Riskdata applications.
1. Patent No FR2808909, international extension WO0186473
Pre-Integrated Interfaces
HEDGiX also provides the user with a range of pre-developed automatic loaders for immediate roll-out with minimal mapping issues. The solution is fully and seamlessly interfaced with Excel, making it immediately operational in most cases.
Powerful Replication Analysis
Select automatically among a large number of risk factors the small subset that best explains the risk of a portfolio.
Replication Analysis: Among 50 equity Indices, the top 8 which best explain Microsoft Risk have been automatically selected.
Figure 3
Wide and Expandable Coverage
HEDGiX offers consistent coverage across all asset classes, types and OTC structures, including exotic non-linear instruments. Uncommon and new financial instruments are easily incorporated into the system.
Common and “User-Defined” Pricing Models
HEDGiX provides a comprehensive set of common pricers as well as a powerful, easy-to-use scripting language, RTSCRIPT, to implement proprietary pricing models.
'What-if' Analysis
With HEDGiX, Hedge Funds can instantly simulate the risk impact of possible trades and check intra-day the risk exposure or sensitivity to prospective market events.
Predictive correlated stress scenarios enable the user to evaluate the potential impact of market events or scenarios on fund return distribution.
Figure 4
Standard & Advanced Risk Methodology
Including full revaluation Monte-Carlo in high dimension, classical stress tests, advanced predictive correlated stress tests; HEDGiX carefully handles specific risks, including implied volatilities, smiles, yield spreads and relative value strategies.
1000 Monte-Carlo simulation scenarios of a pay-off structure. In this example one can see possible returns of a straddle strategy on the Nasdaq index.
Figure 5
Key Benefits
Broaden Investor Reach
By creating the appropriate risk reports for each investor category down to the individual investor, you establish operational risk transparency with more clients.
Ensure Effective Risk Diversification for Your Investors
Achieve this diversification through active risk management and easy detection of undesired risk concentration. Perform risk analysis as markets change and new risk factors appear, without increased overhead.
Save on Disruption Time and IT Costs
Riskdata's pre-integrated product is immediately operational and saves implementation time compared to traditional solutions — Our clients' testimonials prove this. HEDGiX is intuitive to use with a very short learning curve. Moreover, Riskdata's unique technology requires no investment in costly processing power.
Keep Your Strategies Confidential
You understand better than anyone your source and structure of risk. HEDGiX enables you to maintain control of your risk management process and preserves your business sensitive information, whilst being able to give an operational report to the investor with relevant highlights of your risk profile.
Satisfy Risk Aggregation Needs
Create reports in forms suitable for aggregation — to reflect the multi-dimensional nature of risk. Accommodate the aggregation requirements of your clients.
Remain Fully Flexible With Regards to Your Business Growth
Expandable coverage, flexible instrument modelling and advanced full revaluation Monte-Carlo methodology mean that HEDGiX will support any expansion of your business into new instruments and investment styles.
Principals Gain Unprecedented Insight Into Portfolios Risk
HEDGiX brings unique power to assess the risk of multi-style and multi-manager portfolios. Senior management can readily monitor risk allocation and quickly detect drifts that may compromise overall investment objectives.
1000 Monte-Carlo simulation scenarios of a pay-off structure. In this example one can see possible returns of a straddle strategy on the Nasdaq index.
Figure 6
Strategy Coverage:
HEDGiX is suitable for all types of funds, including:
- Long-Short Equity
- Yield Curve Arbitrage
- Volatility Arbitrage
- Market Neutral
- Global Macro
- Merger Arbitrage
- Multi Strategy
- Event Driven
- Emerging Market
Riskdata continuously works with Hedge Funds and investors to define standard templates relevant to each strategy. Nevertheless, Riskdata also offers the flexibility in terms of risk factors, pricing models and reporting forms to cover the strategies dealing with more complex pay-off structures or illiquid markets such as:
- Convertible arbitrage
- Credit arbitrage
- High Yield
Contact Risdata Today to order HEDGiX
For more information and to request a HEDGiX price quote, follow to contact us page or call one of our offices below:
Paris Office: +33 1 44 54 35 00
London Office: +44 (0)20 7659 0433
New York Office: +1 (212) 931 5794
“Specifically developed for Hedge Funds and Alternative Investments, Riskdata's HEDGiX is a complete risk management solution adapted to dynamic investment strategies. The practical risk reports produced by HEDGiX match both in-house active management needs and the growing demands of institutional investors for clear, relevant, and comparable risk analysis. HEDGiX enables hedge funds to build a direct dialogue with their investors, yet keep full control over their proprietary positions.”
Forbes.com
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