Liberty Ermitage, the fund of hedge funds manager, has bought Riskdata’s FOFiX risk management product for its portfolio construction and risk management systems.
“We believe that Riskdata will add valuable insight to our investment process, specifically in helping us to further quantify the key factor risks driving performance in both our single manager and fund of fund products,” says Ian Cadby, CEO and CIO of Liberty Ermitage.
FOFiX aims to allow fund of fund managers to aggregate all available information about individual hedge funds across the entire portfolio, while treating them as a distinct asset class.
“Institutional investors will only maintain their growing interest for alternative investments if we can deliver effective risk transparency,” says Olivier le Marois, CEO of Riskdata. “FOFiX is the first solution for funds of funds that allows fund managers to budget their risk throughout the investment process. This facilitates a proactive approach to the portfolio construction process favoured by fund of fund managers. We have found over the last year, that funds of hedge funds in London, New York and continental Europe increasingly recognise the importance of this approach to risk transparency.”