RiskData, provider of expert risk management applications for the alternative investment community, released an upgrade to their software HEDGiX. HEDGIX 3.0 is a complete risk management solution specifically developed for alternative investment strategies.
“Recent market events underscore how imperative it is for investors to understand risk and to plan for unexpected events,” says Ingmar Adlerberg, president of RiskData. “Our mission is to support alternative investors and managers in producing robust, risk-transparent and differentiated performance by providing complete and continuously evolving risk solutions.
“HEDGIX 3.0 provides advanced risk management methods that will allow users to perform important analyses with ease,” he adds. “It combines state-of-the-art risk management techniques in an easy-to-use, process-oriented tool.”
According to Adlerberg, HEDGIX 3.0 is unique because it offers two advanced risk management methods to analyze credit and market risk: the in-depth modeling of systemic specific risk as well as active management risks. In HEDGIX 3.0, both risk methods have been upgraded, and a new feature has been added allowing users to compare approaches and to use the results in an integrated framework to better stress test and explore specific risks. This feature is aimed at helping managers differentiate their returns, and thereby reducing exposure to systemic risk in an increasingly crowded and demanding market.
HEDGIX 3.0 incorporates numerous significant enhancements, including increased insight into not only systematic, but also residual and active management risk. HEDGiX incorporates two risk methodologies: the Monte-Carlo VaR Method focuses on the true management of specific or residual risk, and the Hedge Fund Factor Model analyzes the risk that is associated with the talent of the manager, which is differentiating him from a static portfolio. These two methodologies can be used independently or jointly to achieve greater risk control and transparency. It also permits managers to better differentiate themselves in terms of risk/return profiling from the competition.