Valorica Global FIL, one of Spains first onshore hedge funds, has implemented Insight, a portfolio management and accounting system developed by hedge fund technology provider, Tradar.
Valorica Global FIL, which was launched on 28 September 2007, following approval from the Comisin Nacional del Mercado de Valores (CNMV), manages three investment vehicles. The first, Valorica Global, a long/short equity fund, was given the green light by the Spanish financial regulator on 10 October 2007, while Valorica Macro, a global macro fund, and Valorica Alpha, a multi-strategy vehicle, both gained regulatory approval on 25 January 2008. The decision by the CNMV to permit the operation of onshore hedge funds was taken a few months earlier, in March 2007.
Having enjoyed a buoyant first quarter, Valorica Global FIL has attracted strong interest from both local and international investors. The firm raised 100 million within the first two months of its existence and Vctor Manuel Garca Romero, Valorica Global FILs director general, is confident that the fund will reach the 150 million mark by the end of the June 2008, thereby becoming the market-leading hedge fund in Spain.
As part of the firms drive to cut down operational risk, as well as to reassure potential investors and regulators of the robustness of its technological infrastructure, Valorica has installed Tradar Insight. The Insight portfolio management and accounting platform, which was implemented in September 2007, serves as the funds main front office system, enabling Valorica to monitor exposures in real-time, via the systems live P&L tool.
The new technology also streamlines the reporting of trades to the funds prime brokers and administrator: once trade data has been entered on to Insight, transaction details are automatically collated into a trade file and forwarded to the funds prime brokers and administrator. An exceptions report is generated automatically, highlighting any discrepancies between the prime brokers and the funds records.
Insight integrates with all major prime brokers and fund administrators, which has enabled Valorica to make use of different service providers for its three hedge funds. In addition, Insights extensive reporting functions provide Valoricas fund managers with a convenient, yet highly sophisticated means of monitoring their investments.
“When we go to clients, they ask how we are structured, what IT systems we use and whether our systems are robust and auditable. Tradar is well known and investors are reassured by that. There is particular recognition when we go to international clients. Spanish regulators also pay a good deal of attention to operational risk and systems, so it is important to have invested in solid technological infrastructure,” says Romero.
“Spanish regulators only recently permitted the operation of onshore hedge funds but the market is already flourishing. Valorica is one of Spains first hedge funds and also one of its most successful. The company is our first Spanish hedge fund client and were delighted by the firms decision to install Insight,” adds Tony Swei, CEO, Tradar.