Investor Analytics LLC, a provider of risk analysis and risk management applications to the hedge fund industry, plans to offer advanced analytics for the hedge fund industry based on research by Dr. Andrew Lo, Chief Scientific Officer of AlphaSimplex Group, LLC, an asset management firm specializing in alternative investments. The productknown as the AlphaSimplex Analytics Array or A3will be available Q1 2009 on the Investor Analytics platform alongside its existing package of risk tools for the hedge fund industry.
Recently, Investor Analytics announced its newly upgraded and modular risk reporting platform which was specifically designed for incorporation of new and better risk analyses such as those of AlphaSimplex.
The theoretical underpinnings of the A3 framework is the Adaptive Markets Hypothesis, an evolutionary theory of market dynamics proposed by Dr. Lo to reconcile the Efficient Markets Hypothesis with the many anomalies uncovered by studies in behavioral finance.
Investor Analytics is very excited to be working with AlphaSimplex and Dr. Lo in bringing this unique suite of tools to the market, says Damian Handzy, chairman and CEO, Investor Analytics. A3 addresses precisely those market-risk issues that have figured so prominently in the current crisisnamely, illiquidity, unprecedented volatility, and fat tails.
We expect every hedge fund investor will want the unparalleled degree of risk transparency that A3 can provide, says Dr. Andrew W. Lo, Chief Scientist, AlphaSimplex.
L.D.