BAM Buys Reech Capital Hedge Fund Risk Management Tool

Baring Asset Management (BAM) says it is adopting the Reech RiskHedge system for the Baring Hedge Select Fund to improve the transparency of investment portfolios within their fund of hedge funds. "Trustees prefer the funds of funds route when investing

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Baring Asset Management (BAM) says it is adopting the Reech RiskHedge system for the Baring Hedge Select Fund to improve the transparency of investment portfolios within their fund of hedge funds. “Trustees prefer the funds of funds route when investing in hedge funds because it diversifies risk however, they don’t like the lack of transparency that often arises with these more complex structures, especially compared to other asset classes, “explains Ronald Watt, Head of Investment Companies at Baring Asset Management. “After reviewing the work being done by the Investor Risk Committee of IAFE, we are responding to these concerns and are expanding our analytical capability by adopting a risk platform.”

Over the last six months BAM has worked with investment adviser Optima Fund Management, a New York based Fund of Funds Group, to identify the risk platforms available. “The Reech RiskHedge Platform gives investors greater assurance as it allows us to monitor more closely the position of the individual funds within the portfolio,” says Watt. “The strategy and exposure, including gross long, short, leverage, value at risk, country and sector positions, can all be monitored in aggregate or for individual funds. Being able to drill down to analyse information, allows us, as the Fund of Fund Investment Manager to better explain specific exposures within the portfolios.”

Christophe Reech of Reech Capital adds: “Baring Asset Management chose the Reech RiskHedge system, a Reech Capital service, because of its comprehensiveness and flexibility. Industry steps like this will help encourage pension funds, and private investors, to invest in hedge funds as they enable the Investment Managers to explain risk exposures more comprehensively.”

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