BlueGold Capital Management, a new commodity derivatives hedge fund focused on energy, softs, agriculturals and base metals, will use SunGards Kiodex for commodity risk management.
SunGards Kiodex Risk Workbench is a Web-based commodities risk management application that integrates deal capture, valuation models, risk measurement, financial reporting and independent market data with Kiodexs Global Market Data. Kiodex Global Market Data includes representative prices, forward curves, volatilities, volatility skews and correlations across the spectrum of commodity markets.
SunGards Kiodex helps new hedge fund managers like BlueGold to achieve rapid time-to-market, through the combination of its Software-as-a-Service (SaaS) delivery model, which facilitates ease of implementation, and the provision of pricing and risk management models that can handle the unique aspects of commodities, such as seasonality.
In addition, Kiodex offers hedge funds the ability to run independent valuations, sensitivity and VaR, to help them demonstrate due diligence to investors. Reference and independent market data provided by Kiodex also help support both internal and investor reporting.
“We chose SunGards Kiodex because it is a proven risk management solution in the commodity hedge fund space. Additional deciding factors included the ability for Kiodex to be quickly implemented, and easily integrated with our hedge fund administration and prime brokerage systems. Most importantly, Kiodex provides models and analytics that are preconfigured to handle the nuances specific to commodities,” says Julian Reis, managing director, BlueGold in London.
“SunGards Kiodex helps cross-commodity hedge funds reduce time-to-market without having to sacrifice risk management best practices. It provides robust commodity-specific models and independent valuations. As hedge funds grow, Kiodex helps traders quickly add and evaluate new strategies, and helps risk managers assess exposure from a variety of perspectives,” adds Ben Jackson, COO, SunGard’s Kiodex business unit.