Delivering an enterprise risk and reporting solution

Linedata Investment Data Analytics Service ends hedge fund’s model management and reporting headaches

The managers of a $5B global hedge fund realized their inhouse risk solution could no longer sustain growth or address regulatory and investor reporting requirements. The fund’s risk team struggled with bandwidth issues, knowledge gaps, missing data, and too little time to validate reports before the start of each business day. Upgrading their inhouse systems promised to be pricy, with major onboarding costs from multiple outside vendors.

That’s where Linedata’s offshore team of risk experts stepped in with a tailored solution including analytics, reporting, quality assurance, and data management.

Risk statistics are aggregated by the client’s choice of attributes, and over 40 customer-built regulatory and investor reports are delivered by 8AM EST every business day.

But the service doesn’t stop there. Our dedicated risk analysts are always available to answer questions from the firm’s CRO and portfolio managers. Full data management, data cleansing and modelling, and model validation provide accurate outcomes and third-party verification while freeing internal teams from time-intensive processes.

With Linedata, the fund benefits from MBA- and CFA-level expertise at a fraction of onshore costs, while leveraging timezone advantages and global expertise across a range of models, strategies, geographies, and reporting requirements.

The results have been transformational. In addition to having the accurate reporting and analytics they need at the start of each business day, our client has realized six-figure annual savings, with nominal implementation costs compared to other providers.

Linedata’s Risk Solution

We’ll configure the right risk solution for your needs, including analytics, reporting, quality assurance and data management. Choose from a range of options, including historical and Monte Carlo VaR, custom stress scenarios, and modelling of complex OTC products; statistics aggregated by your choice of attributes, such as strategy, fund manager, asset class, and region; and bespoke regulatory (Form PF) and investor protocol-compliant (OPERA) reporting. Stringent quality assurance and model validation includes risk model calibration, market data accuracy, Greeks and sensitivities per risk factor, and historical, single/multifactor, and conditional/predictive stress scenarios.