A challenging and complex global market environment, mixed with volatile macroeconomic trends, is making alpha generation—and capital raising—increasingly difficult for hedge funds. While there are pockets of success, over the last few years the industry has witnessed subpar performance across many funds, and, as a result, client redemptions have gone up. The tide may turn, of course, but there is a source of potential alpha enablement available now that fund managers can use to help gain a profitable edge. Recently, innovative hedge funds have been turning to technology as an enabler of capturing opportunity in the markets.
Generating alpha is highly correlated to the quality of an organization’s portfolio and risk management infrastructure. To that end, Numerix hosts a technology platform that offers real-time trading and risk management applications that cover a wide range of OTC derivatives, of any complexity across any asset class, as well as cash securities. Hedge funds must be able to accurately price and manage the risk of the trades very quickly before the opportunity disappears—and that is a competitive advantage that Numerix’s industry-leading technology provides.
One differentiating factor is that the platform allows flexibility in the approach to analytics and user interfaces to ensure the needs of every portfolio manager are met. The platform also meets all of a fund’s operational requirements, from trade execution to portfolio management, operations, accounting and risk.
While historically focused on global macro and fixed income funds, the platform is suited to any institutional or alternative manager with intraday PMS/RMS needs.
With Numerix, you have the tools and services needed to take advantage of new trading opportunities—the fastest and most efficient way possible. Performance is the focus.
|•||Real-time distributed architecture that provides performance and scalability||•||Produce post-trade valuations for fund NAVs and client reporting, and/or obtain independent valuations to validate NAVs|
|•||Shadow NAV, PNL, positions and risk are all updated in real time||•||Integrate market-standard derivative pricing and risk analytics into proprietary applications, to create bespoke analysis customized to a fund’s trading and risk strategies|
|•||Pre-trade “what if” analytics||•||Rapidly structure new derivative types using an infinitely flexible deal-structuring architecture which includes a payoff scripting language|
|•||Accurately price any derivative, from vanillas to exotics across all asset classes, utilizing any model from the industry’s most comprehensive model library||•||Perform initial margin or collateral calculations during pre-trade counterparty discussions or post-trade validations, to optimize counterparty choices and reduce disputes|
|•||Calculate risk sensitivities/Greeks and manage market risk via scenarios/stress tests, VaR and expected shortfall analysis||•||Gain credibility with investors, who demand the use of market leading technology like Numerix’s in pricing and risk infrastructure|
|•||Customizable screens allow you to see the information you need||•||Perform strategy analysis and back-testing, as well as model comparisons to choose best pricing model|
|•||Spreadsheet-like modeling workbench, which provides the ultimate flexibility for strategy research, testing and monitoring while substantially reducing the operational risk inherent in spreadsheets||•||Provides a true front-to-back service by connecting with prime brokers, custodians, confirmation platforms, fund administrators and in-house systems using a myriad of standard and third-party protocols|