Scalable, Integrated Solutions for Hedge Funds
Following a period of intense financial turmoil and consolidation, the priority for hedge funds is to balance innovative strategies with cost cutting measures. Hedge funds also need to adapt to potentially stringent risk requirements not just from regulators, but also from new and existing investors, who are more cautious about where they invest their money and the information they demand during the investment cycle.
Hedge funds therefore need affordable IT systems that can be implemented quickly, with all new projects delivered on time. They need a system that is open, secure, scalable and flexible, and that provides user-friendly tools to portfolio managers, risk controllers, operation managers, middle and back office teams, as well as IT.
Our expertise
Sophis has 10 years' experience working with hedge fund institutions and is fully aware of its clients' business challenges. Our clients include 60 hedge funds, who use our solution for a wide scope of activities, from absolute return to global macro strategy. The size of our clients varies from two to three users for start-ups up to 200 users for bigger players.
Sophis VALUE provides proven cross-asset coverage for real-time NAV and risks calculation. It also allows hedge funds to have a real-time view of all operations, including pricing, position keeping, processing, data access and data transfer to other systems. It provides standard connections with numerous third parties, including prime brokers and administrators to reconcile transactions, positions and cash as precisely as possible.
The hedge fund industry, including regulators and investors, recognises that it must prioritise risk management. Sophis technology includes in house pricing models for all types of derivatives and risk analytics.
There is also a need for hedge funds to improve operational risks by adopting better internal controls. Sophis provides an integrated application that centralises all functionalities without any data reconciliation requirements between portfolio managers, risk managers, middle office and accounting. Having a single front-to-back full STP solution greatly reduces all forms of operational risk.
The entire system can be implemented in just three weeks for start-up hedge funds, or in up to three months for larger projects. This is thanks to VALUE's off-the-shelf functionality, out-of-the-box user screens for all instruments, ready-made interfaces and easy navigation for all users on one single application.
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| "With Sophis, not only have we put in place a risk system that can be scaled to our future needs, but a portfolio management system that has given us an edge in handling complex instruments"
Stephen Grobman, Chief Risk Officer of Lombard Odier Asset Management |
| Two years on from its implementation of Sophis VALUE, Arqaam Capital explains why Sophis was the right choice for its business |
